Louisiana Sen. Bill Cassidy discusses his $1.5 trillion investment fund proposal to address Social Security shortfalls, while AARP’s Bill Sweeney reacts to the 2027 cost-of-living adjustment. Sen. Bill Cassidy, R-La., warns that “the clock is ticking” for Social Security as larger cost-of-living adjustments (COLAs) could accelerate the depletion of the program’s trust fund, adding urgency to a $1.5 trillion deficit. financing that is already coming. FOX Business’ Darren Botelho joined “Varney & Co.” to report on the senator’s concerns about Social Security finances and the impact of rising rates on retirees. Sen. Bill Cassidy warns that time is running out for Congress to address Social Security’s looming funding shortfall as rising costs put pressure on retirees. (Kevin Dietsch/Getty Images) The warning comes as beneficiaries prepare for a 3.6% cost-of-living adjustment in 2027, which Botelho said would equate to about $75 more per beneficiary per month. The increase is intended to help beneficiaries manage higher daily expenses, but the larger benefit payments also put pressure on a system facing a long-term financial gap. BISIGNANO, SOCIAL SECURITY CHIEF SAYS PROGRAM ‘WILL BE HERE FOR ANOTHER 90 YEARS’ Cassidy argued that the latest adjustment makes congressional action more urgent, warning of dire consequences if lawmakers don’t address the deficit. Michael A. Peterson, CEO of the Peter G. Peterson Foundation, discusses the fiscal challenges facing the United States and why policymakers must seek solutions. “The fact that the COLA is much higher obviously reflects recent inflation, but I think it’s going to deplete the trust fund much faster,” Cassidy said. “So if we now have like five and a half years until the trust fund is emptied, at which point, by law, there will be a 28.5% benefit cut or Congress ignores the law and just starts borrowing money like crazy to pay benefits, the clock is ticking.” Botelho reported that Cassidy wants Congress to act before the situation worsens. Meanwhile, advocates for older Americans say annual benefit increases don’t necessarily keep pace with the costs retirees face. AARP Senior Vice President Bill Sweeney noted concerns among seniors who rely on monthly payments. State Financial Officers Foundation CEO OJ Oleka joins Stuart Varney to discuss the critical need to revive retirement savings. Oleka explains why retirement savings shouldn’t stay stagnant and shares solutions for workers. “76% of seniors tell us it’s not enough, that the COLA doesn’t keep up with inflation…These are people who really depend on Social Security and especially the COLA to make sure they can continue paying their bills.” HERE TO GET FOX BUSINESS ON THE MOTION
