Social Security could become insolvent in less than six years, which would mean an average benefit cut of 24%. The Committee for a Responsible Federal Budget (CRFB) has proposed a hard cap of $50,000 a year on benefits for individuals retiring at the Normal Retirement Age (67 for those born after 1960) beyond 2026, or $100,000 for married couples filing jointly. If the cap is indexed to inflation, it would save $100 billion over a decade and close 20% of the 75-year shortfall; if it is frozen for 30 years and then indexed to wage growth, savings would reach $190 billion over a decade and resolve 55% of the shortfall. Receiving $50,000 a year would require maximum earnings for 35 years or more, so only a small share of workers would be affected, mostly younger, higher-income workers. The proposal has not yet been introduced as legislation in Congress.
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