Senator warns that higher COLA could hasten Social Security trust fund depletion
Sen. Bill Cassidy said the upcoming 3.6% cost-of-living increase will speed up the exhaustion of Social Security’s trust fund, urging Congress to act.
Senator Bill Cassidy cautioned that the 3.6% cost-of-living adjustment planned for 2027, roughly $75 more per beneficiary each month, will drain Social Security’s trust fund faster than anticipated. He estimates the fund could be empty in about five and a half years, after which the law mandates a 28.5% benefit reduction unless Congress intervenes. Cassidy suggested allocating $1.5 trillion to a dedicated investment account to help close the projected shortfall.
Meanwhile, AARP senior vice president Bill Sweeney highlighted that a majority of older adults feel the COLA does not keep pace with inflation. The senator’s remarks add pressure on lawmakers to balance retirees’ purchasing power with the program’s long-term solvency.
Why it matters
Social Security funds affect millions of retirees; delays in reform could lead to sharp benefit cuts.
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