- The Social Security Administration announced a 3.6 percent cost-of-living adjustment beginning December 31, boosting the average monthly payment to $2,011.66.
- Experts emphasize that the annual increase only helps retirees catch up to previous inflation rather than offering real financial growth.
- The Old Age and Survivors Insurance Trust Fund is projected to run out in 2032, which could trigger an automatic 22 percent cut to monthly benefits.
- The looming trust fund shortfall is driven by longer life expectancies and a declining ratio of active workers paying into the system per retiree.
- Advocates suggest eliminating the income cap on Social Security taxes, which could extend the trust fund's solvency by up to 35 years.
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