Think tank proposes capping annual Social Security payments at $100,000

A leading fiscal watchdog is proposing a new cap on Social Security payouts, arguing that the change could help shore up the program’s long-term finances as it edges closer to insolvency.

The Committee for a Responsible Federal Budget outlined a plan on Tuesday to limit annual Social Security benefits to $100,000 for couples retiring at a normal age. The policy proposal has been dubbed the “Six Figure Limit.”

The proposal comes as Social Security’s trust fund is projected to reach insolvency in seven years. Without congressional action, the program would only be able to pay a portion of scheduled benefits, triggering cuts for millions of retirees who have paid into the program.

The group argues that capping benefits for the highest earners would bring the United States in line with most other developed nations. According to their analysis, retirement benefits for other countries usually cap between $30,000 and $40,000, the study found.