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Think Tank Proposes $100,000 Cap on Top Social Security Benefits

The plan targets high earners as one of several ideas now in play to reduce the risk of a trust fund shortfall projected for 2032.

Overview

  • The Committee for a Responsible Federal Budget outlined a 'Six-Figure Limit' that would cap annual benefits at $100,000 for couples and $50,000 for individuals, with the thresholds rising with inflation.
  • CRFB estimates fewer than 2% of roughly 56 million retirees 65 and older would be affected, mostly top earners who already receive the largest checks, with cuts around 5% on average for the top 1%.
  • The group projects about $100 billion in savings over the next decade and says the cap would close at least one fifth of Social Security’s 75‑year financing gap.
  • Advocacy groups pushed back, calling any cap a slippery slope, and reporting shows no sign that Congress has advanced legislation based on the proposal.
  • Reporters also detailed other options with CRFB math, including raising the taxable wage cap to cover 90% of pay to close 26% of the gap or eliminating it to close 68%.