With Social Security barreling toward insolvency, the government is increasing benefits in January.
On Wednesday, the Social Security Administration (SSA) announced that retirees will receive a 3.6 percent increase in Social Security benefits next year. The raise, which was unveiled shortly after the Bureau of Labor Statistics reported consumer prices rose 3.7 percent year over year in September, will amount to an increase of $75 per month for the average beneficiary. It also represents a cost-of-living adjustment (COLA) that will be 0.8 percentage points higher than last year's, which was 2.8 percent, and 0.9 percentage points higher than what was projected by the Social Security Trustees, according to the Committee for a Responsible Federal Budget.
"Social Security will implement this cost-of-living adjustment for 76 million Americans, giving them greater financial stability," said SSA Commissioner Frank J. Bisignano in a press release. "Under President Donald J. Trump, Social Security is delivering better, faster, higher-quality service for the American people."
But the announcement comes as Social Security faces a looming funding cliff.
The program has been spending considerably more than it receives for years, thanks in large part to the U.S. demographic problem: Birth rates have collapsed, life expectancy has risen, and there are fewer working-age people paying taxes to fund retirees. In 2025, the program collected $1.45 trillion in revenue and spent $1.61 trillion, leaving a $160 billion shortfall. Trust fund reserves covered the gap, but they are rapidly dwindling. In June, Social Security's Trustees projected that, without legislative changes, incoming revenue would cover only 78 percent of scheduled retirement and survivor benefits by late 2032—a 22 percent shortfall. Combined retirement and disability funds are expected to run out by 2034. There are a handful of fixes, including raising the retirement age, reducing benefits, raising the cap on earnings, means-testing the program, privatizing it, or getting rid of it altogether.
While many lawmakers have acknowledged reality, Congress remains divided on how to address the issue. In August, Sen. Ron Wyden (D–Ore.) blocked a proposal from Sen. Bill Cassidy (R–La.) to establish a congressional process to consider reforms, arguing that it would slash retiree benefits and help billionaires "avoid paying their fair share."
"People are objecting to doing their job," Cassidy complained in September. "Congress needs to fix Social Security this year."
What makes Wednesday's increase even more unjustified is the fact that older Americans are already among the wealthiest age groups in the country. According to the Federal Reserve's latest Survey of Consumer Finances released last week, households headed by someone aged 75 or older had a median net worth of $504,900 in 2025, compared with just $33,000 for households headed by someone under 35. Despite their relative wealth compared to working-age people, retirees are getting a COLA increase that is greater than the average worker, whose wages have risen by 3 percent in the last year.
For the very wealthiest beneficiaries, the 2027 COLA will constitute an enormous increase. According to the Committee for a Responsible Federal Budget, the highest-earning couples who retired this year will receive a combined increase of $3,600, meaning that their combined benefits would exceed $100,000 next year. However, without congressional action, Social Security recipients could expect a 22 percent cut that, in 2032, would wipe out the previous nine years' COLAs all at once.
Despite years of warnings about Social Security's deteriorating finances, Congress has yet to enact reforms to avert the looming shortfall. For now, beneficiaries can look forward to larger checks in January, even as the program moves closer to the day when it can no longer pay the benefits it has promised.
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More than five million people have lost their Supplemental Nutrition Assistance Program, or SNAP, benefits since President Trump's One Big Beautiful Bill passed last year. The bill cut SNAP funding, expanded work requirements and recently pushed more program costs to states. As Stephanie Sy reports, that's meant many more people are turning to food banks for support.
A new study shows that in‑cash child benefits play a vital role in reducing child poverty in the EU. On average, these benefits lower the risk of poverty among children by 10.6 percentage points.
The impact of in‑cash child benefits varies across EU countries. Austria sees the strongest effect, with child poverty reduced by 16.6 percentage points. Spain shows the smallest reduction, at 4.6 percentage points. These differences suggest there is room for EU countries to learn from each other and achieve higher social standards.
Key findings
Child benefits can do more to reduce poverty: large differences between EU countries show room to make cash benefits more effective and help reach the 2030 poverty reduction target.
Better targeting and wider access could make a difference: in around one third of EU countries, disadvantaged families receive less financial support than better-off families.
Benefits in kind also support families: by making essential goods and services more affordable, they can reduce the financial pressure on families.
More children in early childhood education and care (ECEC) could support parents in work: increasing participation could raise maternal employment by up to 5 percentage points, making it easier to combine work and care.
Investing in children pays off in the long term: analysis shows benefits for education, employment and health. Overall, for every €1 invested in quality benefits in kind for children, the estimated return is €5.26.
Progress towards the 2030 child poverty target
The EU has committed to reducing the number of children in poverty by at least 5 million by 2030. Progress towards this target has stalled, so efforts need to be stepped up and policies improved.
Government spokesman Pavlos Marinakis triggered an outrage when he proposed that the “unemployment benefits” should last just two months in order to force jobless to take up a work. According to Greek legislation, the unemployment benefit of 526 euros per month increased by 10% for each child runs for maximum 12 months provided that the […]
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