Social Security faces potential 22% benefit cuts as 2027 COLA renews funding debate

Social Security beneficiaries could face a 22% across-the-board benefit reduction in 2032 without congressional action, according to the Committee for a Responsible Federal Budget (CRFB), as a new cost-of-living adjustment renews debate over the program's financial future. The warning comes as Social Security's retirement trust fund approaches a projected 2032 depletion date, putting pressure on lawmakers to address the program's long-term funding shortfall. Social Security recipients will receive a 3.6% cost-of-living adjustment in 2027, raising the average retired worker's monthly benefit by about $75, from $2,095 to $2,170, according to estimates cited by AARP. The increase, announced by the Social Security Administration on Wednesday, will take effect with December benefits, which are paid in January. US REGULATOR ACCUSES NATION'S LARGEST BANKS OF DEBANKING CUSTOMERS OVER POLITICAL VIEWS The 2027 increase is the highest COLA in four years and compares with a 2.8% adjustment this year.