US Social Security faces trust‑fund shortfall and potential $98 COLA rise in 2027

The Social Security Trust Fund is projected to be depleted by 2032, raising concerns that retirement benefits for tens of millions of Americans could be cut. Lawmakers are discussing options such as higher payroll taxes or other budgetary reforms, while some commentators argue that younger workers—Millennials and Gen Z—should be allowed to opt out of the program and rely on private retirement accounts instead of a system they view as increasingly unsustainable.

Analysts also forecast a larger cost‑of‑living adjustment (COLA) for 2027. Independent estimates range from a 3.8% to a 4.7% increase, which would lift the average monthly Social Security benefit of $2,083 by roughly $79 to $98. The final COLA will be set after third‑quarter inflation data is released in October, and any rise in Medicare Part B premiums could offset the boost. Until the official figure is announced, the projected increase remains speculative.