CRFB proposes capping Social Security benefits at $100,000
Updated
Updated · USA TODAY · May 4
CRFB proposes capping Social Security benefits at $100,000
9 articles · Updated · USA TODAY · May 4
The Washington think tank says the cap would help address a funding shortfall projected by 2032, when retirees could otherwise face a 28% cut in monthly benefits.
Its plan would limit annual benefits to $100,000 for couples and $50,000 for single retirees, indexed to inflation, and CRFB estimates it would close at least one-fifth of the gap.
The proposal drew swift criticism from retirement advocates, while other options under debate include raising or removing the taxable income cap, increasing payroll taxes and lifting the retirement age.
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Addressing Social Security’s Looming 2034 Insolvency: The Case for a $100,000 Benefit Cap
Overview
Social Security faces a looming crisis as its trust funds are projected to be depleted by 2034, triggering an automatic 23% benefit cut for all retirees. This shortfall is driven by demographic changes and revenue gaps, worsened by decades of inaction. In response, the CRFB proposed the Six Figure Limit (SFL) in 2025, capping annual benefits at $100,000 for couples and $50,000 for singles at normal retirement age. Depending on indexing, the SFL could save $100 to $190 billion over ten years, delay insolvency by up to seven years, and primarily affect the wealthiest retirees while protecting most beneficiaries. Combining the SFL with revenue measures could fully restore long-term solvency.