...and you should have upwards of $2M with all the gains. Which means a pretty nice annual disbursement amount, on top of SS and any other savings/pension you might have (if any). That's part of why many retirees DON'T downsize when they retire. We didn't. We were religious about saving for retirement (and invested wisely) and now we're living a higher lifestyle than when we were working. In a bigger/nicer house. 

Now, I do think that dropping the cap from $18k to $2400 is a bit too much. I'd be surprised if it drops that far. It's likely just a starting point and will end up somewhere in between (if it sticks at all).