A powerful new proposal just dropped that would strip full COLA increases from millions of higher-earning seniors starting in 2026. The 2.8% COLA is still coming for everyone in January… but after that, millions will NEVER get the full inflation boost again.
This isn’t a rumor. It’s a detailed plan to save $115 billion over 10 years and push back the 2032 bankruptcy cliff. Here’s exactly what’s happening, who gets hit hardest, and what you need to do right now.
The New Proposal: Full COLA Only for Lower Earners
The plan is simple and brutal:
- Full COLA for the first $33,000 of your yearly benefit (about $2,750/month)
- Zero COLA on anything above that
That means:
- Average retiree ($24,000/year benefit) → unaffected (still gets full $56/month boost)
- Higher earners ($50,000+/year benefit) → lose $200–$1,400 per year in future COLA
- Max benefit earners → lose over $1,000 every single year forever
Who Gets Screwed the Worst?
- Doctors, lawyers, executives, business owners
- Anyone who earned $80K+ for most of their career
- Early retirees (age 62) — their cap is reduced another 30%
- Couples where both had good careers
90% of retirees are completely safe. The top 10% take the entire hit.
Real Numbers for 2026
- Average retiree: $2,071/month (full 2.8% COLA)
- High earner (capped): $4,200/month instead of $4,300+ (lose $1,200–$1,400/year forever)
- SSI & low-income: 100% protected — full COLA every year
Why They’re Doing This
Social Security runs out of money in 2032 → automatic 24% cut for everyone. This proposal saves $115 billion and delays the crash — by making high earners pay the price instead of cutting everyone equally.
What You Must Do Right Now
- Log into mySocialSecurity.gov — check your December COLA letter to see your exact 2026 amount
- If you’re in the top 25% — consider delaying retirement to 70 (increases your protected base)
- Contact your representatives — this isn’t law yet (vote expected spring 2026)
- Make sure direct deposit is current — payments start January 2026 regardless
Bottom Line
- 90% of seniors → nothing changes
- 10% of seniors → permanently lose thousands per year in future COLA
This could be the biggest Social Security change in decades. If you’re a high earner, the clock is ticking.
Disclaimer: This is a proposal, not law. Final details may change. Confirm with SSA.