New Proposal to Cap Social Security Benefits Aims to Address Funding Shortfall
A new proposal has been introduced to address the financial challenges facing the Social Security program. The Committee for a Responsible Federal Budget suggests implementing a 'six-figure limit' on Social Security benefits, which could potentially resolve about one-fifth of the program's cash shortfall. This proposal would cap the total benefit for a couple retiring at full retirement age at $100,000, while individuals could receive a maximum of $50,000 per year. This measure is designed to affect only the highest earners, as the average benefit for retired workers is currently just under $25,000 per year. The Social Security Administration has been using its trust funds to cover the gap between income and payouts, but these funds are projected to be depleted by 2034. Without intervention, the program's income sources are expected to cover only 81% of future benefits, potentially leading to a 20% reduction in monthly checks. 
