2022 Social Security COLA Payment Schedule – Monthly Payments of $1,800 Expected to Hit Millions in 2023

MILLIONS of Americans are set to receive $1,800 in increased monthly payments next year.

The Senior League (TSCL) has changed its COLA 2023 projection, now Estimate that COLA will rise to around 8.6% next year.

The increase would mean that the average benefit would increase by about $143 per month to $1,800, and the maximum amount would increase by about $361 to $4,555.

Social security benefits are calculated each year on the basis of a cost of living adjustment (COLA).

Where the Consumer Price Index (CPI) ends towards the end of the year determines the COLA amount for the following year.

This year, the average Social Security benefit is $1,657 and the maximum amount is $4,194 per month.

Read our 2022 COLA Increase live blog for the latest news and updates…

  • Understanding the LOC

    Because inflation was high in the 1970s, COLAs were used to protect compensation-related contracts, real estate contracts, and government benefits.

    The CPI-W is determined by the Bureau of Labor Statistics (BLS) and is used by the Social Security Administration (SSA) to calculate COLAs.

    The COLA formula is calculated by multiplying the percentage increase in CPI-W between the third quarter of one year and the third quarter of the following year.

    On the SSA website, this information is regularly updated.

  • Mitch McConnell on Social Security, continued

    Scott’s proposal would require Congress to regularly vote on reauthorizing Social Security and Medicare, according to Motley Fool.

    This would cause significant uncertainty for older people and could cause problems for future retirees, who could not rely on social security to support them.

    However, McConnell rejected that proposal, implying that a Republican majority in the Senate would not pose a substantial immediate danger to Social Security.

  • Mitch McConnell on Social Security

    Senate Minority Leader Mitch McConnell recently spoke about the future of Social Security, in response to a plan proposed by Sen. Rick Scott on what the GOP might do if it took control of Congress, according The Motley Fool.

    He said: “I will decide in consultation with my members what to put on the floor.

    “We will not have on our agenda a bill that raises taxes for half the American people and cuts Social Security and Medicare within five years.”

  • Are the benefits likely to cease?

    If you intend to rely on the program in 2035, keep in mind that you may receive fewer Social Security payments than expected, yahoo reported.

    According to the board’s annual report for 2021, if no changes are made to address the deficit in the trust fund, payments will have to be reduced by 22%.

    For many retirees, such a reduction in benefits would be a financial blow.

    Yahoo reports that 50% of older married couples and 70% of older singles depend on Social Security for at least half of their income.

  • Schedule of benefits for 2022

    Social Security benefits are paid on a schedule based on the applicant’s date of birth.

    Those with birthdays between the 1st and 10th of the month can expect to receive their first payment on the second Wednesday of the month.

    The third Wednesday of the month is reserved for people whose birthday is between the 11th and the 20th.

    Applicants with birthdays between the 21st and 31st can expect to receive payments on the fourth Wednesday of the month.

    This schedule remains stable throughout the 2022 calendar year.

  • Four changes each year

    There are at least four changes that occur every year in Social Security:

    • Cost of living adjustments
    • Revenue review limit
    • The value of a work credit
    • Social security tax ceiling
  • Why does Social Security tend not to go far?

    The maximum benefit is $3,345 per month for someone who files for Social Security in 2022 at full retirement age (FRA).

    FRA is the age at which you are entitled to 100% of the benefit calculated from your income history.

    It’s $40,140 a year. However, the average rent in the United States is around $1,100 to $1,200.

    That leaves a retiree with $25,740 a year, which is just above the poverty line.

    When planning for your retirement, it’s important to remember that Social Security is only supposed to cover about 40% of pre-retirement income.

  • Some children can apply for SSI without parents

    While children will need to be eligible for Social Security benefits through their parents, SSI is available for some children, regardless of their parents’ status.

    Children under the age of 18 are eligible for SSI under the following circumstances:

    • The child must have a physical or mental condition that seriously limits his activities;
    • The condition(s) must have lasted, or be expected to last, at least one year or result in death.
  • How child benefits work

    If an eligible parent dies, the children can receive benefits as long as they meet the same age, disability and marital status requirements.

    Children whose parents are retired or disabled can receive a benefit worth 50% of their parents’ total benefit, or 75% if their parent is deceased.

    The highest monthly Social Security benefit is currently $4,194, so children can receive a maximum of $3,145.50.

    These benefits can also be claimed by spouses.

  • How children can get SSI benefits

    After a parent has worked for 10 years or gained Social Security eligibility, their children are eligible for benefits if:

    • The parent is disabled or retired
    • The child is unmarried and under the age of 18
    • Child is 18 or older and has a disability that began before age 22
    • The child previously received at least half of their financial support from the eligible parent
  • Alternatives to COLA, continued

    It’s natural to assume that spending habits differ between those who are working and those who are retired, especially when it comes to healthcare spending, according to The Balance.

    A recommended alternative is to base the COLA on an index measuring in particular the cost of living of the elderly, such as the CPI-E.

    The CPI-E measures the spending habits of Americans aged 62 and over.

    Although there has been a desire to replace the CPI-W with the CPI-E, this has not yet been realized.

  • Alternatives to COLA

    Some have questioned the methodology used to determine the cost of living adjustment, TheBalance.com.

    The SSA bases its COLA increases on the CPI-W.

    The spending habits of urban wage earners and office workers are used to create this index.

    The index is made up of people who are employed and earn money. They are not retirees.

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Elaine R. Knight