A study suggests capping Americans' Social Security benefits now to prevent a worse outcome for everyone.

A Washington think tank proposed the 'Six Figure Limit' in March,USA Todayreported. If that pushes through, annual Social Security benefits will be capped at approximately £79,000 ($100,000), all in an effort to bolster the retirement trust fund.

The proposal has already gained supporters, including The Washington Post editorial board. 'The Six Figure Limit is the right idea for a program that currently pays about one-third of benefits to retirees with incomes over $100,000,' the newspaper's boardstated. 'The wealthiest members of the wealthiest generation in human history do not need more government largesse.'

In its paper and proposal, the Committee for a Responsible Federal Budget, a non-partisan think tank, suggested that the cap should be implemented starting this year, the £79,000 applied to the total annual benefit for a couple at full retirement age, or about £36,800 ($50,000) limit for a single retiree.

The measure could give the Social Security program up to £140.1 billion ($190 billion) over the next ten years, per the proposal, but that depends on the implementation. Those affected by the cap represent a small, considerably affluent minority of beneficiaries, according toCBS News.

'Thewealthiest seniors are collecting from Social Securityfor the first time $100,000 in benefits,' Marc Goldwein, senior policy director at the CRFB, told the outlet. '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 study paints a bleak future for all beneficiaries if the problem isn't nipped in the bud. Retirees can expect up to 28% cut in monthly benefits by 2032 and onwards, according to projections. That's unless Congress develops and immediately implements a solution to the impending shortfall.

Alternative solutionsinclude removing the income cap, increasing the payroll tax rate, raising theSocial Security retirement age, and slowing the benefit growth for high earners, all of which have significant caveats. There's also the issue of exercising political will once a solution gains consensus.

'You and I could do it in an hour,' Alicia Munnell, senior adviser at the Centre for Retirement Research at Boston College, told USA Today in April. 'It is not hard. It is just a question of will, which is totally missing.'

The AARP, formerly the American Association of Retired Persons, said Congress should tread carefully before even considering the benefit cap.

Source: International Business Times UK