A Washington D.C. think tank recently proposed capping annual Social Security benefits at $100,000 for couples and $50,000 for individuals. The plan, from the nonpartisan Committee for a Responsible Federal Budget, aims to close at least 20% of the program's looming funding gap.
Social Security faces insolvency by 2032. Without congressional action, retirees could see a 28% cut in monthly benefits.
Retirement advocates immediately criticized the cap, warning it could erode benefits for the middle class. But the proposal is just one of several ideas on the table.
Other popular fixes include raising or eliminating the income cap taxed for Social Security, increasing the payroll tax rate, extending the payroll tax to employer-sponsored health benefits, and raising the full retirement age.
The Congressional Budget Office estimates Social Security's trust fund will be exhausted by 2035. The program currently pays benefits to roughly 67 million Americans each month.
Alicia Munnell, senior advisor at the Center for Retirement Research at Boston College, told USA TODAY the problem is solvable. "It is just a question of will, which is totally missing," she said.