Many older Americans depend heavily on Social Security to cover basic living expenses like food, medicine, and rent. But rising inflation and higher healthcare costs have made it harder for retirees to make ends meet.
To address these issues, a new proposal called the Social Security 2100 Act could bring major improvements to the system. This Act aims to increase monthly benefits, improve how cost-of-living adjustments (COLAs) are calculated, and ensure the long-term survival of the Social Security program.
If passed, this Act could add up to $2,600 per year to some beneficiaries’ payments—money that could be a huge help to those on fixed incomes. In this article, we explain what the Act is all about, who it will benefit most, and how you can prepare for these potential changes.
What Is the Social Security 2100 Act?
The Social Security 2100 Act, officially known as “Social Security 2100: A Sacred Trust,” was introduced by Rep. John Larson (D-CT). The main goal of this bill is to increase benefits for current recipients while making the program more stable for future generations.
According to the Social Security Administration (SSA), if no changes are made, the trust fund could run out of money by 2034, resulting in about a 20% cut in benefits. This Act addresses that concern by adjusting how benefits are calculated and requiring wealthier Americans to contribute more to the system.
Key Changes That Could Add $2,600 a Year to Your Benefits
2% Across-the-Board Increase
All Social Security recipients would get a 2% raise in their monthly payments. For someone getting ₹1,100 per month, this means ₹22 more per month, or about ₹264 extra per year.
Fairer Cost-of-Living Adjustments (COLAs)
Today, COLAs are based on the CPI-W, which doesn’t match how older people actually spend money. The Act suggests using the CPI-E, a measure that better reflects costs like healthcare and housing. This could mean higher yearly adjustments for retirees.
Higher Minimum Benefits
The Act proposes raising the minimum Social Security benefit to 125% of the poverty line. That means no one on Social Security would receive less than ₹1,518 per month, or ₹18,225 per year. This change would mainly help people who worked low-wage jobs their whole lives.
Better Support for Widows and Long-Term Recipients
Special boosts are included for surviving spouses and those who have been receiving benefits for over 20 years. This ensures their payments keep pace with inflation and don’t fall below what’s needed to live on.
Who Benefits the Most?
This bill is especially helpful for:
Low-income retirees
Women and minorities, who often earn less and depend more on Social Security
Disabled workers
Older retirees, who are affected more by rising costs
Surviving spouses, especially those with small lifetime earnings
Example:
Mary, age 72, worked as a caregiver and receives about ₹900 per month in Social Security. Under the Act:
A 2% raise adds ₹18/month
New COLA rules may add ₹200–₹300 per year
A higher minimum benefit could push her income closer to ₹1,518/month
This would greatly improve her ability to manage rising living costs.
Why Reform Is Urgent
Social Security was created in 1935 when people didn’t live as long. Today, people often live well into their 80s. Meanwhile, healthcare, housing, and basic costs keep rising. Without change, the SSA says only 80% of promised benefits may be payable by 2034.
In 2022, Social Security lifted over 22 million Americans out of poverty, including 15 million seniors. So, reform is not just necessary—it’s vital for protecting millions of lives.
How the Act Plans to Fund These Changes
New taxes on incomes over $400,000, ensuring that high earners contribute more
These new funds are expected to extend the Social Security program’s solvency to at least 2038
How to Prepare for Potential Changes
Even though the bill hasn’t passed yet, you can get ready:
1. Check Your Earnings Record
Create a “My Social Security” account at SSA.gov and make sure your income history is accurate.
2. Use Retirement Estimators
Try SSA’s online calculators to get an idea of your future benefits.
3. Stay Informed
Track the bill’s progress on Congress.gov or check SSA news updates.
4. Talk to a Financial Advisor
Get expert advice on how to adjust your retirement plans if this Act becomes law.
The Social Security 2100 Act could bring meaningful change for millions of retirees across America. With possible increases of up to ₹2,600 per year, fairer cost-of-living adjustments, better minimum benefits, and stronger protections for surviving spouses and the disabled, this legislation is a step toward a more secure retirement for all.
While it’s not yet law, staying informed and planning ahead will help you take full advantage if and when the Act is passed.
