Why Some Seniors May No Longer Receive a Full Social Security COLA
It’s no secret that the Social Security trust fund is facing a severe funding shortfall. According to the latest Social Security Trustees Report, the retirement trust fund is projected to run out of reserves in the fourth quarter of 2032. That leaves lawmakers about five years to come up with a plan to shore up Social Security.
Raising the full retirement age or eliminating the payroll tax cap for high-income earners are two ideas being tossed around, but a Yahoo! Finance article says a new proposal has people talking.
The Committee for a Responsible Federal Budget (CRFB), a bipartisan nonprofit, suggests limiting cost-of-living adjustments (COLA) for the highest-income earners. A white paper it published says the proposed change “could be a rapid, thoughtful and progressive way to help restore solvency and put Social Security on a sustainable path.”
The Yahoo! Finance article explains that under the CRFB’s new proposal, “all beneficiaries will continue to receive an annual COLA. However, retirees with the largest benefits — and typically the highest lifetime earnings — will face a fixed-dollar cap on their annual COLA.”
A Fairer Solution
The Seniors Trust believes a better solution to solving Social Security solvency already exists. We are calling on Congress to enact the Social Security Expansion Act, which would ensure a fairer COLA for all retirees.
Additionally, this landmark piece of legislation will also extend the solvency of the Social Security trust fund through 2096, expand Social Security benefits by about $200 a month for current and new beneficiaries, require millionaires and billionaires to pay their fair share into Social Security by lifting the wage cap, and improve the Special Minimum Benefit for Social Security recipients which would help low-income workers stay out of poverty.
Is this something you can get on board with? Join us in urging lawmakers to enact the Social Security Expansion Act. You can show your support by signing our petition.
