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

About 1 million individual Social Security beneficiaries receive at least $50,000 in annual payments, or more than $100,000 for a retired couple, according to an analysis by the Committee for a Responsible Federal Budget, a nonpartisan think tank focused on fiscal and budgetary issues. 

Although that represents less than 2% of the roughly 56 million people 65 or older who get Social Security, the CRFB’s analysis projects that the share will grow over time, given the annual cost-of-living adjustment for Social Security benefits and as a growing number of Americans reach retirement age.

How much would a six-figure cap save?

Capping Social Security payments at $100,000 for couples or $50,000 for single older Americans would save as much as $190 billion over a decade and close at least 20% of the program’s solvency gap, the analysis found. The “six-figure limit” could be combined with other possible fixes — such as lifting the income exemption for Social Security taxes or boosting the payroll tax — to plug the program’s funding hole. 

“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 CBS News. “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.”

The CRFB’s proposal suggests indexing the $100,000 benefit threshold either to inflation or by using wages as a peg. That would guard against middle- and low-income households being affected by the proposed cap as the Social Security Administration issues cost-of-living increases.

The $100,000 couple

Couples who jointly receive more than $100,000 in Social Security benefits are those who have earned at least the Social Security taxable maximum income, which now stands at $184,500, for at least 35 years and who claim their benefits at their full retirement age, which is 67 this year.

A maximum-earning couple, both age 67 and claiming this year, would receive $101,000 in annual benefits, or about $8,416 in monthly payments, according to the CRFB. 

By comparison, the average monthly benefit for a retired worker is $2,071, according to Social Security.

If the retirement program’s trust fund becomes insolvent, all Social Security beneficiaries would face a benefit cut of about 20%, according to experts. Because millions of seniors rely on Social Security for all or most of their income, such a reduction would likely sharply drive up poverty among older Americans.

AARP’s response

AARP, a group representing Americans 50 or older, pushed back against the plan to put a lid on benefits for certain wealthy beneficiaries.

“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,” Jenn Jones, AARP vice president for financial security and livable communities, said in a statement. “What’s worse, ideas like this risk becoming a backdoor to broader cuts.”

Older Americans also don’t want to see their benefits reduced after paying into the program during their careers, she added.