AARP Says Flat-Rate COLA Would Cut Benefits for 80% as Social Security Nears 2032 Shortfall
Updated
Updated · USA TODAY · Sep 9
AARP Says Flat-Rate COLA Would Cut Benefits for 80% as Social Security Nears 2032 Shortfall
3 articles · Updated · USA TODAY · Sep 9
Summary
80% of Social Security beneficiaries would get a smaller annual adjustment under a flat-rate COLA, AARP says, arguing the change would steadily erode inflation protection for most retirees.
AARP estimates the average beneficiary would have received $34.20 a month in 2026 instead of $57.90, losing $285 over the year and falling short of actual inflation.
The proposal would give every recipient the same dollar increase, pegged to the benefit boost for someone at the 20th percentile, rather than the current percentage-based COLA applied to all checks.
Supporters including the Committee for a Responsible Federal Budget say that design would boost low earners, reduce poverty and keep full benefits flowing 2 more years as the trust fund heads toward depletion by 2032.