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For Social Security, the "I" in FICA stands for insurance. Social Security, in reality, is an insurance program. It is not a savings program like a 401k. On average, if you file for benefits at full retirement age, you are paid back the money you put in within 4-6 years. Counting the employer's contribution on your behalf, it's 8-10 years. If you file at 62, you are paid back within 6-9 years.

One of the more controversial proposals that has been discussed for many years to keep Social Security solvent is “means testing.” Whether you have made $20,000 a year or $200,000 a year, everyone I have ever talked to has expressed the same sentiment, “I have paid into the system, and I am entitled to my full benefit.”

We have all heard the horror stories about Social Security going broke. That assertion is categorically false. As it stands now, if Congress does not act to solve the funding problem, benefits will continue as always, but the amount will be reduced across the board by 23% starting in 2032. Despite facing large deficits, Social Security now pays the more successful couples roughly $100,000 in annual benefits. Although only a small fraction of recipients at this time, six-figure benefits will become increasingly common over time due to couples now having their own Social Security retirement benefit.

The Trust Fund Solutions Initiative white paper, published on March 24, 2026, offers a new option to improve Social Security solvency by establishing a maximum benefit level. The Six Figure Limit (SFL) would set a $100,000 cap on the total benefits a couple retiring at the Normal Retirement Age (NRA-new nomenclature for full retirement age) can receive. The SFL would be adjusted based on marital status and claiming age, with a $50,000 limit for a single retiree collecting at the NRA.

The Office of the Chief Actuary for the Social Security Administration issued its annual report on January 13, 2026 entitled “Summary of Provisions That Would Change The Social Security Program” based on the 2025 Social Security Trustees Report. This 35-page report provides 144 different solutions to keep the Social Security Trust Fund solvent. This comprehensive report addresses these 8 specific topics:

• Cost of Living Adjustments
• Level of Monthly Benefits
• Retirement Age
• Family Members
• Payroll Taxes
• Inclusion of Other Sources of Revenue
• Trust Fund Investment in Marketable Securities
• Taxation of Benefits

Keep in mind that this new six figure limit is, at this time, a trial balloon and a proposal only from the Committee for a Responsible Budget (CRFB). This is a proposal that could start immediately in 2026 but has not been enacted by law and has no start date at this time. Realistically, this new six figure limit proposal is nothing more than a back door means test. Over the next several years you will hear and read many different proposals for Social Security to sustain its solvency. Since Congress has basically failed to address the solvency issue for 40 years, time is running out. Because of the complexity and the changes that need to be made due to the solvency issues, seeking professional guidance when it comes to your personal claiming strategy is imperative.

Remember, take the wrong benefit at the wrong time, it’s always smaller and forever.