The Cassidy-Kaine Social Security Plan Would Fund Retirement Benefits With $170 Trillion in New Debt

Social Security's status as a self-financed contributory program would end under the Cassidy-Kaine "Big Idea" proposal. The plan requires the federal government to borrow $1.5 trillion over 10 years to create an investment trust fund for Social Security.

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retirement planning

Social Security could pay 24% less in six years — here’s what that means for your retirement

Social Security could only pay about 76% of scheduled benefits in six years, when the Old-Age and Survivors Insurance Trust Fund is projected to be exhausted, according to the Congressional Budget Office. That means monthly checks could drop by roughly 24% — about $18,400 less per year for a typical retired couple — unless Congress acts. The system would continue paying benefits using incoming payroll taxes, but without a reserve, it can’t cover the full amount promised. The shift to a pay-as-you-go model would leave millions of current and future retirees facing a stark shortfall. A 24% reduction in benefits would affect the financial security of current and future retirees who rely on Social Security as a primary income source.

Treasury borrowing would increase by an additional $25 trillion over 75 years to cover yearly benefit shortfalls. The strategy relies on the fund growing to a size that allows it to repay the initial $1.5 trillion with interest.

According to the Committee for a Responsible Federal Budget, the plan would increase the national debt by up to $170 trillion, adjusted for inflation, over the course of 75 years. The debt-to-GDP ratio would increase by at least 140 percentage points.

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social security

2027 Social Security COLA projected at 2.8%, same as 2026, as long-term solvency concerns grow

The average retired worker’s monthly Social Security check will rise by $56.69 in 2027, bringing the average benefit to $2,081.46. This increase, a 2.8% cost-of-living adjustment, matches the 2026 COLA and is based on the Consumer Price Index for July, August, and September 2026, not the full year. That methodology means the adjustment is tied to a narrow window of inflation data, which may not reflect the full year’s economic conditions. The Senior Citizens League projects no change in the COLA for 2027, despite recent inflationary pressures from rising energy prices. The Social Security trust fund, however, remains under long-term threat. It is projected to be depleted by 2032, at which point benefits would be cut by an average of 24% unless reforms are enacted. One proposal to address the shortfall, the 'Six-Figure Limit,' would cap benefits at $100,000 for couples. TSCL research shows that 95% of seniors oppose benefit cuts for current retirees, and 66% oppose cuts for future retirees. The organization argues that the $100,000 cap fails to account for rising living costs and may not adjust for economic growth. An alternative proposal, supported by 77% of seniors, is to eliminate the current cap on Social Security payroll taxes, which currently stops at $184,500 in annual income. According to the Social Security Administration’s Office of the Chief Actuary, this change would extend the program’s solvency through at least 2090 without benefit reductions.

Related Brief2d ago

retirement planning

Social Security could pay 24% less in six years — here’s what that means for your retirement

Related Brief21h ago

social security

2027 Social Security COLA projected at 2.8%, same as 2026, as long-term solvency concerns grow

The Cassidy-Kaine Social Security Plan Would Fund Retirement Benefits With $170 Trillion in New Debt

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The Cassidy-Kaine Social Security Plan Would Fund Retirement Benefits With $170 Trillion in New Debt

Read More Analysis

The CLARITY Act's ban on passive yield would eliminate stablecoin interest

A $13 million hack forces shutdown of Russia-linked Grinex exchange

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Read More Analysis

The CLARITY Act's ban on passive yield would eliminate stablecoin interest

A $13 million hack forces shutdown of Russia-linked Grinex exchange

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Read More Analysis

The CLARITY Act's ban on passive yield would eliminate stablecoin interest

A $13 million hack forces shutdown of Russia-linked Grinex exchange