Millions of US seniors could lose full Social Security COLAs. New proposal may preserve program, but here’s who loses

The Social Security program is facing financial strain, with the retirement trust fund expected to run out of reserves by late 2032. To address this issue, the Committee for a Responsible Federal Budget (CRFB) is proposing a plan to limit cost-of-living adjustments (COLA) for high-income beneficiaries. While the proposal is still a proposal, it may become more crucial as the program's reserves dwindle.

The Trustees Report, released in June 2026, projects that the combined retirement and disability trust funds will last until 2034, with only 83% of scheduled benefits payable after reserves are depleted. The COLA, which is tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), is expected to increase by 2.8% in 2026.

Under the CRFB's plan, COLAs would still be provided to all beneficiaries, but a cap would be placed on the COLA for those in the top 25% of beneficiaries, based on their primary insurance amount (PIA). This cap could result in smaller increases for higher earners, though they would still receive some COLA protection.