Millions of US seniors could lose full Social Security COLAs. New proposal may preserve program, but here’s who loses

Live updates

1. 18d ago

   2027 Social Security COLA Forecasts Vary Amid Funding Crisis

   New estimates for the 2027 Social Security cost-of-living adjustment suggest a potential boost of up to 3.6%, though other forecasts indicate a dip in expected benefit increases. These fluctuations occur as Congress weighs a proposal to limit full COLAs for millions of seniors to prevent the program from falling to a projected 78% payout rate. Retirees are weighing whether to claim benefits now or delay to capitalize on these adjustments.

   Why it matters

   The Social Security trust fund faces a financial crisis that may force benefit cuts if lawmakers do not reach a compromise. Current projections show the program could eventually pay only 78% of scheduled benefits.

   Still unconfirmed

   • The 2027 Social Security cost-of-living adjustment may be up to 3.6% according to CNBC.
   • The 2027 COLA forecast has taken a dip according to The Motley Fool.

   What to watch next

   • Official announcement of the 2027 COLA percentage
   • Congressional vote on the proposal to limit full COLAs for certain seniors
   Sources used for this update (4)

   1. www.sandiegouniontribune.com — San Diego Union-Tribune
   2. www.cnbc.com — Why to delay claiming Social Security — even when COLAs are high
   3. www.fool.com — The 2027 Social Security COLA Forecast Has Taken a Dip, and More Bad News Could Be on the Way
   4. baynews9.com — Could a new plan with no new city taxes be the key in Rays' stadium funding?
   confidence 70%
2. 23d ago

   Proposal Targets Social Security COLAs to Address Funding Crisis

   Millions of US seniors face the potential loss of full Cost-of-Living Adjustments (COLAs) under a new proposal designed to preserve the Social Security program. While Congress is addressing the financial crisis, a final solution remains distant. Current projections indicate a future date where the program can only pay 78% of benefits. Various perspectives on a fix range from traditional adjustments and political compromises to letting the trust fund reach zero.

   Why it matters

   Social Security relies on a trust fund that faces long-term depletion. If the fund fails, the program cannot pay full benefits to retirees. This creates a conflict between maintaining current benefit levels and ensuring the program's solvency.

   Still unconfirmed

   • Millions of US seniors could lose full Social Security COLAs under a new proposal.
   • Social Security will eventually only be able to pay 78% of benefits.
   • Congress is taking the Social Security financial crisis seriously but a fix may be a long way off.

   What to watch next

   • Legislative action or formal introduction of the COLA reduction proposal in Congress.
   • Updated projections on the date the trust fund reaches zero.
   • Official government reports on the specific percentage of benefit cuts if no action is taken.
   Sources used for this update (6)

   1. Yahoo Finance — Millions of US seniors could lose full Social Security COLAs. New proposal may preserve program, but here’s who loses
   2. WSJ — Opinion | Fixing Social Security Is a Political Problem
   3. The Washington Post — Opinion | The best way toward a Social Security fix? This one is tried and true.
   4. The Motley Fool — Congress Is Finally Taking Social Security's Financial Crisis Seriously, But a Fix Could Still Be a Long Way Off
   5. Cato Institute — Let the Social Security Trust Fund Go to Zero
   6. Cleveland.com — Here’s the date when Social Security would only be able to pay 78% of benefits
   confidence 50%