A bipartisan group suggests capping cost-of-living adjustments for top earners to delay Social Security trust fund depletion until 2032.
A new proposal from the Committee for a Responsible Federal Budget (CRFB) aims to preserve Social Security solvency by limiting cost-of-living adjustments (COLA) for high-income earners. The change could delay trust fund depletion, currently projected for Q4 2032, according to the latest Social Security Trustees Report.
The CRFB’s white paper, citing Urban Institute calculations, describes the move as a progressive solution to restore sustainability. Without action, incoming revenue would cover only 78% of scheduled benefits after reserves run out. The proposal joins other cost-cutting measures, including raising the full retirement age or eliminating the payroll tax cap.
The plan remains under discussion, with no legislative action taken yet. Lawmakers face growing urgency as the 2032 deadline approaches, threatening across-the-board benefit cuts if no reforms are enacted.