Is it Time We Consider a COLA Cap to Restore Social Security Solvency?
Social Security has about seven years until the retirement trust fund runs out. Without legislative action, retirees could see a 24 percent cut in benefits by 2032. No one wants to see that happen, so experts are looking at ways to shore up Social Security.
According to an article by the Committee for a Responsible Federal Budget, one option might be to cap the cost-of-living adjustment (COLA). Citing its Trust Funds Solution Initiative, “under the proposed COLA cap, all beneficiaries would continue to receive an annual COLA, but that COLA would be limited in size for those with the largest benefits (and highest lifetime income).”
The article states that a COLA cap would make Social Security more progressive because it would “limit adjustments to the retirees with the largest benefits and the highest lifetime earnings – those likely to have the most income and wealth.”
It’s a good sign that concerned people are exploring options to save Social Security. We at The Seniors Trust are committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. Not only will it ensure the long-term solvency of this critical program, but it will also give retirees an immediate benefits increase of about $200 a month, a fair annual COLA, and increased minimum benefits.
