Overview
- The Committee for a Responsible Federal Budget unveiled a “Six-Figure Limit” that would cap annual benefits at $100,000 for couples and $50,000 for single retirees.
- Modeling by the Open Research Group projects $100 billion to $190 billion in savings over 10 years and solvency gains that grow over time.
- The analysis finds the cap could close about one-fifth of the long-term shortfall if indexed to inflation, with larger effects under wage-based indexing.
- CRFB says about 1 million beneficiaries would be affected, and planners note fewer than 2% of recipients now receive six-figure Social Security income.
- If Congress does nothing when the trust fund runs out in 2032, current law would trigger cuts of about 20% to 24%, and a separate estimate puts possible reductions near 30%.