A new proposal would cap Social Security COLA increases for top earners to extend solvency and save $115B over a decade. The plan maintains full inflation protection for most retirees as the system nears depletion by 2032.
00:00It's Benzinga, bringing Wall Street to Main Street.
00:02The Committee for a Responsible Federal Budget proposed capping of Social Security costs and living adjustments for top earners to slow benefit growth and extend program solvency.
00:11And according to a new report, Social Security Retirement Trust Fund could be depleted in seven years.
00:16We combined funds exhausted in nine.
00:18They need to a 24% benefit cut by late 2032 without reforms.
00:23The proposed cap would limit annual COLA increases for recipients at the highest income levels while maintaining full inflation protection for most beneficiaries.
00:31The Committee estimated that setting the cap into the 75th percentile benefits could save $115 billion over a decade and close one-tenth of Social Security's 75-year funding gap.
00:41The plan aims to preserve the program's sustainability without discouraging worker savings as the system faces mounting fiscal pressure.
Be the first to comment