Overview
- Nonpartisan analysts at the Committee for a Responsible Federal Budget propose capping annual cost‑of‑living adjustments for beneficiaries at or above a 75th‑percentile benefit benchmark tied to full retirement age.
- The model includes a $900 annual cap example with age‑based adjustments that reduce caps by about 30% for early claimers and increase them for those who delay beyond full retirement age.
- The proposal’s estimated savings total about $115 billion over 10 years and would trim roughly 10% of Social Security’s projected solvency gap, leaving larger fixes still necessary.
- Trustees project the main trust fund’s reserves could be depleted around 2033–2034, after which ongoing revenue is expected to cover about 77% of scheduled benefits without new legislation.
- For 2026, a 2.8% COLA is set, yet experts warn retiree expenses such as Medicare premiums, housing and health care often rise faster, and reports indicate benefit garnishment for certain debts could resume with tighter limits than during recent pauses.