Core Insights - Capping Social Security cost-of-living adjustments (COLA) for high earners could save the program $115 billion over a decade and reduce the solvency gap by about 10% [4][9]. Group 1: Social Security Funding Challenges - The Social Security program is projected to deplete its main trust fund in approximately eight years, leading to potential benefit cuts of nearly 20% for 68 million beneficiaries [2][6][9]. - A report from the Committee for a Responsible Federal Budget suggests capping annual COLA increases based on income levels to extend the program's funding [2][9]. Group 2: Current COLA Mechanism - Benefits for Social Security recipients are determined by their earnings over 35 years and the age at which they claim benefits, with annual increases tied to inflation as measured by the Consumer Price Index [3][10]. - The most recent COLA will increase benefits by 2.8% in 2026 [3]. Group 3: Proposed Changes - The proposed cap on COLA for the top 25% of beneficiaries would limit annual increases, potentially saving $115 billion over ten years [4][9]. - The cap would be set at $900, meaning if a beneficiary's calculated COLA is $1,000, they would only receive a $900 increase the following year [11]. - The cap would vary based on the age at which benefits are claimed, with reductions for those claiming early and increases for those delaying claims [11][12]. Group 4: Alternative Perspectives - Advocates for Social Security argue that the current COLA formula does not adequately reflect beneficiaries' expenses, with some lawmakers proposing additional monthly benefits [5][6].