A nonpartisan think tank’s proposal to cap Social Security benefits at $100,000 for couples and $50,000 for individuals is gaining attention as the program’s trust fund faces depletion by 2032. The “Six Figure Limit” plan from the Committee for a Responsible Federal Budget aims to close at least one-fifth of the solvency gap, saving up to $190 billion over ten years. It targets high-income retirees while reportedly leaving the bottom 90% unaffected, though advocacy groups strongly oppose any benefit cuts.
A proposal to cap Social Security benefits is drawing debate amid warnings the trust fund could run dry by 2032. Without congressional action, retirees face a potential 28% benefit cut. The plan, known as the “Six Figure Limit,” was introduced in March by the Committee for a Responsible Federal Budget.
It sets a $100,000 annual cap for couples and a $50,000 limit for single retirees at full retirement age. According to the committee’s modeling, this would save between $100 billion and $190 billion over a decade. The cap targets the wealthiest retirees who earn above the taxable maximum.
The Committee for a Responsible Federal Budget argues in its whitepaper, “As an income support program, there is a good case that Social Security should provide a base of retirement income, not a windfall.” By 2030, the plan would cut average benefits by 5% for the top 1% of earners. It claims the bottom 90% would see zero impact in early years.
Retirement advocacy groups have pushed back strongly against the idea. The Senior Citizens League stated, “This effectively amounts to a benefits cut for some Americans, and TSCL’s research finds that 95% of seniors oppose benefits cuts for current retirees, while 66% oppose cuts for future retirees.” Other reform proposals are also on the table to address the funding gap.
Options include raising the payroll tax or increasing the income threshold subject to tax. Raising the retirement age by one year is estimated to close 12% of the shortfall. Experts note that a single measure like the benefit cap is unlikely to fully solve the problem. Alicia Munnell, senior adviser at the Center for Retirement Research at Boston College, told USA TODAY, “You and I could do it in an hour. It is not hard. It is just a question of will, which is totally missing.” The debate highlights that solutions exist, but political will is lacking before the 2032 deadline.
