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Senator warns ‘clock is ticking’ as Social Security funds run dry
Fox Business • • business
Key Points:
- Sen. Bill Cassidy warns that higher cost-of-living adjustments (COLA) for Social Security, including a 3.6% increase in 2027, could accelerate the depletion of the program’s trust fund, intensifying the urgency for congressional action.
- The planned COLA increase will provide roughly $75 more per beneficiary per month to help retirees manage rising expenses but also exacerbates the system’s long-term financing shortfall.
- Cassidy highlights that the trust fund may run out in about five and a half years, after which benefits could be cut by 28.5% unless Congress intervenes by borrowing or reforming the program.
- To address the funding gap, Cassidy proposes creating a separate $1.5 trillion investment account and urges lawmakers to act promptly to avoid worsening the situation.
- Advocates, including AARP, emphasize that many older adults find COLA increases insufficient to keep up with inflation, underscoring the challenge of balancing benefit adequacy with Social Security’s financial sustainability.
