Sen. Bill Cassidy, R-La.
, is pressing Congress to act on Social Security before its trust fund runs out, warning the window is closing fast.
He estimates the fund could be depleted in roughly five and a half years, a timeline that would put benefits at risk under current law.
The warning comes as beneficiaries prepare for a 3.6% cost-of-living adjustment in 2027, which would add about $75 per month for each recipient.
That increase is meant to help offset rising everyday expenses, but it also raises the financial demands on a program already facing a projected long-term funding gap.
Higher COLA Adds Pressure on the Trust Fund
Cassidy tied the larger adjustment to recent inflation and said it could speed up the depletion of the trust fund.
"The fact that the COLA is that much higher, obviously reflects recent inflation, but I think it's going to drain the trust fund that much faster," he said.
He said the projected timeline leaves lawmakers with limited room to solve the funding problem.
Under his assessment, the trust fund could be exhausted in about five and a half years, creating a risk of reduced payments if Congress does not intervene.
"So if we now have like five and a half years until the trust fund goes empty, at which point by law, there'll be a 28.5% benefit cut or Congress ignores the law and just starts to borrow money like crazy to pay benefits, the clock is ticking," Cassidy said.
Cassidy has proposed placing $1.5 trillion into a separate investment account as a way to help narrow Social Security's projected funding gap.
He wants Congress to address the issue before the financial situation deteriorates further.
Meanwhile, advocates for older Americans have questioned whether annual adjustments adequately reflect retirees' living expenses.
Bill Sweeney, senior vice president at AARP, cited feedback from older adults who rely on Social Security payments to cover their bills.
"76% of older adults tell us that it isn't enough, that the COLA isn't keeping up with inflation… These are people who really rely on Social Security and especially the COLA to make sure that they can continue to pay their bills," Sweeney said.
The figures highlight two pressures facing Social Security: maintaining retirees' purchasing power as prices rise and closing the funding gap that threatens current benefit levels.
Cassidy's proposal calls for a separate investment account, while the projected depletion timeline underscores the need for congressional action.
