A Surprising Share of Social Security Goes to Retirees Making Over $100,000

Millions of retirees depend on Social Security benefits for seniors, but a surprising portion of those benefits are going to retirees with six-figure incomes. 

A report from the Washington Post and IRS data indicate that seniors with annual incomes over $100,000 receive more than one-third of benefits. As the Social Security program faces insolvency and Congress debates over potential ways to reform the program, this distribution of benefits evokes questions about the program's structure and just where those benefits should be going.

Here's why even high earners receive Social Security benefits, the proposals this information is fueling, and the potential changes that Congress is exploring.

What the Washington Post revealed about Social Security payments

In August, the Washington Post editorial board ran an article highlighting Social Security's pressing insolvency and where benefits payments are going. The piece criticized the Social Security program.

"Social Security is out of step with modern times," read the piece. "Most countries with fiscally sensible retirement programs follow the same basic structure: A tax-funded transfer payment as a floor, with means-tested benefits and compulsory private savings above that. Such a structure ensures that benefits are targeted where they are most needed without overburdening the government's budget."

The piece suggested that since retirement accounts are the largest source of household wealth, "a big chunk of Social Security benefits goes to people who don't need them." The piece revealed that over one-third of benefits go to seniors with incomes of over $100,000, and it predicted that that share "is likely to increase over time."

How the Social Security program works

The figure about the amount of benefits going to high-income retirees may be eye-opening to anyone who thinks of Social Security as being a safety net for lower-income individuals. However, it's largely a function of how the Social Security program works.

Social Security benefits are directly tied to an individual's work history and previous earnings. To calculate an individual's benefit amounts, the Social Security Administration (SSA) calculates an average indexed monthly earnings (AIME) figure that's based on the individual's 35 best-paid years. Individuals who earned higher amounts during those years have a higher AIME than individuals who earned less.

Other factors impact benefits, too, like the age when an individual decides to claim Social Security benefits. Someone who claims early at age 62 may lose up to 30% of their monthly benefit to make up for the increased amount of time that they'll be claiming benefits. If someone waits until age 70 to claim, Social Security adds to the monthly payments to make up for the fact that the individual collects benefits over a shorter amount of time.

Social Security's insolvency problem

The Washington Post article arrives during a time when conversation around Social Security is already heated. 

The Social Security Trustees' 2026 report projected that the Old-Age and Survivors Trust Fund may become depleted by the fourth quarter of 2032, which is one quarter earlier than the 2025 projection. If the trust fund becomes depleted, the program's revenue would only be able to pay 78% of total scheduled benefits. Such a situation could result in an automatic benefits reduction.

As a result, Congress is under pressure to identify a solution to keep the program solvent and avoid benefits cuts. That's generated lots of conversation about the program, and hearing that a large portion of benefits are going to people with six-figure incomes may feel extra frustrating, knowing that the program is headed toward insolvency.

The proposal to cap Social Security payments

In March 2026, the Committee for a Responsible Federal Budget (CRFB) proposed implementing a six-figure limit on Social Security benefits. The limit would place a $100,000 cap on the total benefit a couple retiring at the Normal Retirement Age could receive; a single retiree would face a $50,000 limit.

According to the CRFB, implementing the limit may offer numerous financial benefits to the program, including saving it between $100 billion and $190 billion over a decade, and eliminating between one-quarter and one-half of the solvency gap if the cap were indexed to average wages. 

The CRFB states that though the cap would reduce scheduled benefits, it would also increase payable benefits for most beneficiaries, since law prohibits Social Security from going into debt after it's insolvent.

"In 2060, the inflation-indexed SFL would boost payable benefits for the bottom 80% of beneficiaries, with a 4% benefit increase for the bottom half," writes the CRFB. "Under the Fixed SFL, 70% to 80% of seniors would enjoy a benefit increase, with an 8% to 25% increase at the bottom."

The argument against capping Social Security benefits

The Social Security program wasn't built as a means-based system, and higher earners receive higher benefits simply because they paid more into the program during their working careers. The Social Security formula still replaces a larger percentage of income for lower-income workers, offering them financial support.

Implementing a means-based cap on benefits would fundamentally change the program. It would also alter the benefits that have been promised to high earners who have been paying into the program.

Bottom line

If implemented, a means-test or cap would mainly affect benefits for high earners, though its exact impact would depend on the cap's amount. It's possible that a means-test cap could help keep Social Security solvent, avoiding benefit reductions for mid- and low-earners.

The means-test isn't the only option on the table. Congress is exploring other ideas, such as raising the retirement age and increasing taxes for higher earners. Since the future of Social Security is uncertain, it may be a good idea to stress-test your retirement plan to see how well you could navigate if benefits were reduced and you received less each month.

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