A $50,000 Social Security Cap Would Require $400,000 in Additional Private Savings

A $15,000 annual reduction in Social Security benefits requires $300,000 to $400,000 in additional investments to replace that income over a retirement period. High earners banking on maximum benefits would need a private savings buffer of $200,000 to $225,000 on top of existing savings. This is the result of a proposal by the Committee for a Responsible Federal Budget to cap annual Social Security benefits at $50,000 for individuals and $100,000 for married couples. The proposal targets top earners to close a funding gap.