https://www.live-feeds.com/feed/social-security-cost-of-living-increase-sparks-debate-over-looming-funding-shortfallContinuously updated, source-cited coverage. https://www.live-feeds.com/feed/social-security-cost-of-living-increase-sparks-debate-over-looming-funding-shortfallhttps://www.live-feeds.com/feed/social-security-cost-of-living-increase-sparks-debate-over-looming-funding-shortfall#u133616Sun, 18 Oct 2026 23:01:19 +0000Social Security recipients will receive a 3.6% cost-of-living adjustment (COLA) in 2027, the largest increase since 2023. High inflation drove the adjustment, which will raise retirement benefits and VA disability payments. Some federal employees may see a smaller adjustment. While the COLA provides immediate relief, a projected trust fund shortfall in 2032 could lead to 22% benefit cuts if Congress does not take action. To help offset costs, the Social Security Administration has also announced a higher payroll tax cap for 2027.Why it mattersThe COLA ensures benefits keep pace with inflation