I think we’ve all read the scary headline: “Social Security is running out of money.” It’s been running out of money — officially, on paper — since the early 1980s. The projected date just keeps moving. Today’s best guess? 2032. But before you panic, keep reading.
Does that mean Social Security benefits disappear?
No — but nearly two-thirds of Americans think they will.
Social Security doesn’t work like a bank account with a zero balance waiting at the bottom. It’s more like a river — with new water (payroll taxes) flowing in every single year, whether the reservoir is full or not.
The real threat isn’t zero benefits — it’s an automatic 24% across-the-board cut for everyone, retired or not, if Congress does nothing. That’s a painful cut for retirees who rely mostly on their Social Security benefits.
So what is Congress doing about it?
On March 24th, the Committee for a Responsible Federal Budget proposed capping Social Security benefits at $50,000 per year for individuals and $100,000 for couples, starting at full retirement age. The thinking behind it is straightforward: the maximum individual benefit already tops $65,000 a year — and thanks to annual cost-of-living increases, America’s wealthiest couples are now collecting roughly $100,000 combined. That’s the tier this proposal targets.
What does the research say?
Economist Jason DeBacker of the Open Research Group ran the numbers on three versions of this cap. The findings are worth a look:
Does that mean Social Security benefits disappear?
No — but nearly two-thirds of Americans think they will.
Social Security doesn’t work like a bank account with a zero balance waiting at the bottom. It’s more like a river — with new water (payroll taxes) flowing in every single year, whether the reservoir is full or not.
The real threat isn’t zero benefits — it’s an automatic 24% across-the-board cut for everyone, retired or not, if Congress does nothing. That’s a painful cut for retirees who rely mostly on their Social Security benefits.
So what is Congress doing about it?
On March 24th, the Committee for a Responsible Federal Budget proposed capping Social Security benefits at $50,000 per year for individuals and $100,000 for couples, starting at full retirement age. The thinking behind it is straightforward: the maximum individual benefit already tops $65,000 a year — and thanks to annual cost-of-living increases, America’s wealthiest couples are now collecting roughly $100,000 combined. That’s the tier this proposal targets.
What does the research say?
Economist Jason DeBacker of the Open Research Group ran the numbers on three versions of this cap. The findings are worth a look:
- $100B–$190B in savings over the next decade
- Closes one-fifth to one-half of Social Security’s long-term solvency gap
- 60%–90% of the savings come from the top 20% of retirees
- The bottom 70%–80% of beneficiaries could actually see a benefit boost
In other words: the people who need it most could end up better off.
This is one proposal — not law. But the research is serious and the political momentum is real. We’ll keep watching and keep you informed.
Plan well,
Barbara
April 12, 2026
Source:
https://www.crfb.org/sixfigurelimit
https://www.crfb.org/sixfigurelimit
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