Social Security
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A study suggests capping Americans' Social Security benefits now to prevent a worse outcome for everyone.

A Washington think tank proposed the 'Six Figure Limit' in March, USA Today reported. If that pushes through, annual Social Security benefits will be capped at approximately £79,000 ($100,000), all in an effort to bolster the retirement trust fund.

The proposal has already gained supporters, including The Washington Post editorial board. 'The Six Figure Limit is the right idea for a program that currently pays about one-third of benefits to retirees with incomes over $100,000,' the newspaper's board stated. 'The wealthiest members of the wealthiest generation in human history do not need more government largesse.'

Drastic Measure to Save the Social Security Fund

In its paper and proposal, the Committee for a Responsible Federal Budget, a non-partisan think tank, suggested that the cap should be implemented starting this year, the £79,000 applied to the total annual benefit for a couple at full retirement age, or about £36,800 ($50,000) limit for a single retiree.

The measure could give the Social Security program up to £140.1 billion ($190 billion) over the next ten years, per the proposal, but that depends on the implementation. Those affected by the cap represent a small, considerably affluent minority of beneficiaries, according to CBS News.

'The wealthiest seniors are collecting from Social Security for the first time $100,000 in benefits,' Marc Goldwein, senior policy director at the CRFB, told the outlet. 'This is a program that, when you go back to its founding, was a measure of protection against falling into poverty. The fact that an income support program would pay six figures is a little silly.'

What Happens If the Social Security Problem Isn't Solved?

The study paints a bleak future for all beneficiaries if the problem isn't nipped in the bud. Retirees can expect up to 28% cut in monthly benefits by 2032 and onwards, according to projections. That's unless Congress develops and immediately implements a solution to the impending shortfall.

Alternative solutions include removing the income cap, increasing the payroll tax rate, raising the Social Security retirement age, and slowing the benefit growth for high earners, all of which have significant caveats. There's also the issue of exercising political will once a solution gains consensus.

'You and I could do it in an hour,' Alicia Munnell, senior adviser at the Centre for Retirement Research at Boston College, told USA Today in April. 'It is not hard. It is just a question of will, which is totally missing.'

Proposal Receives Criticism and Backlash

The AARP, formerly the American Association of Retired Persons, said Congress should tread carefully before even considering the benefit cap.

'Proposals that focus on capping Social Security don't address the problem in front of Congress: ensuring every American gets every dollar they have earned,' AARP head Jenn Jones said in a statement.

The paper was released amid the American public's mounting concern about their retirement prospects. A 2025 Bankrate survey revealed that 76 per cent of American workers, as well as 80 per cent of retirees, fear that their benefits will not be paid when needed.

That fear was compounded when President Trump alleged 'shocking levels of incompetence and probable fraud' at the agency during his speech to Congress in March 2025.

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