Social Security change capping benefits payments at $50,000 a year: Experts’ solution to the SSA going broke in 7 years

With Social Security on track to go broke in less than seven years, a new report from the Committee for a Responsible Federal Budget (CRFB) is proposing a solution: Cap Social Security payouts to $100,000 a year for couples, as part of an overall plan to save it from insolvency. (That’s $50,000 for a single retiree.) The renewed spotlight on Social Security follows a recent report from the Congressional Budget Office (CBO) that the main trust funds responsible for paying benefits, the Old-Age and Survivors Insurance Trust Fund, could be insolvent by as early as 2033. By law, that would automatically trigger a massive 24% cut in benefits. On top of the higher cost of living, including higher grocery and gas prices, this would mean a big financial hit for seniors. One reason the CBO is forecasting Social Security could go broke sooner than expected is that the Social Security Administration has had to increase COLA (cost-of-living adjustment) payments to keep up with inflation. SSA