Cassidy Warns 3.6% COLA Could Speed Social Security Depletion as 28.5% Benefit Cut Looms
Updated
Updated · Fox Business · Oct 15
Cassidy Warns 3.6% COLA Could Speed Social Security Depletion as 28.5% Benefit Cut Looms
3 articles · Updated · Fox Business · Oct 15
Summary
A 3.6% Social Security cost-of-living adjustment for 2027 would add about $75 a month per beneficiary, and Sen. Bill Cassidy says that bigger payout will drain the trust fund faster.
Cassidy said the program has about 5.5 years before the trust fund is exhausted, after which benefits would be cut 28.5% by law unless Congress steps in or borrows to cover payments.
To narrow the financing gap, Cassidy is pushing a $1.5 trillion separate investment fund and urging lawmakers to act before the shortfall worsens.
AARP says the pressure runs both ways: 76% of older adults tell the group the COLA still is not keeping up with inflation, underscoring the tradeoff between retirees' purchasing power and the program's long-term solvency.