Rich couples are collecting over $100,000 in Social Security. A new proposal would cap that.

Social Security benefits have long been a crucial source of income for millions of Americans in their retirement years. However, a new proposal is suggesting a cap on benefits for wealthy couples to help the program avoid insolvency in 2032.

According to the Committee for a Responsible Federal Budget (CRFB), about 1 million individual Social Security beneficiaries currently receive at least $50,000 in annual payments, or more than $100,000 for a retired couple. While this represents less than 2% of the total number of Social Security recipients, the CRFB projects that this number will continue to grow over time as more Americans reach retirement age.

The proposal to cap Social Security payments at $100,000 for couples or $50,000 for single older Americans could save as much as $190 billion over a decade and close at least 20% of the program’s solvency gap. This “six-figure limit” could be combined with other potential fixes, such as lifting the income exemption for Social Security taxes or increasing the payroll tax, to help secure the program’s funding.

Marc Goldwein, senior policy director at the CRFB, emphasized the importance of ensuring that Social Security remains a measure of protection against poverty. Indexing the benefit threshold to inflation or wages could help prevent middle- and low-income households from being affected by the proposed cap.

A recent poll from The Peter G. Peterson Foundation revealed that 95% of voters believe lawmakers need to address Social Security’s looming insolvency and avoid automatic benefit cuts in 2032. If the trust fund becomes insolvent, all beneficiaries could face a 20% reduction in benefits, potentially leading to increased poverty among older Americans who rely heavily on Social Security.

AARP, a group representing Americans 50 or older, has expressed concerns about the proposal to cap benefits for wealthy recipients. They argue that such measures do not address the underlying issue of ensuring that all Americans receive the benefits they have earned through their contributions to the program.

As the debate over Social Security reform continues, it is clear that finding a sustainable solution to secure the program’s future is essential. Balancing the needs of both wealthy and lower-income beneficiaries will be crucial in ensuring that Social Security remains a reliable source of income for all retirees.