Experts Warn Trump's Tariffs May Impact 2026 Social Security COLA

Recent volatility in global stock markets has been linked to President Donald Trump's new tariff regime, raising concerns about impacts on pensions and Social Security benefits. While Trump announced a temporary 90-day pause on higher tariffs, experts warn that the uncertainty still poses risks for pension pots, particularly defined contribution plans, which can lose value during market dips. Additionally, the tariffs could increase inflation, potentially leading to a higher Cost-of-Living Adjustment (COLA) for Social Security benefits in 2026, estimated at 2.3%. However, this increase may not fully offset rising costs for essentials faced by seniors. Analysts caution that while a higher COLA may seem beneficial, it could ultimately fail to maintain purchasing power due to inflation driven by tariff policies. Overall, the economic landscape remains uncertain as the long-term effects of these tariffs unfold.