Millions of retirees will see a significant increase in their Social Security checks next year, when the Biden administration gave its cost adjustments (COLA) the most significant boost in nearly 40 years to keep up with rising inflation.
In a shocking display of inflation, the Social Security check would raise it by 5.9%, about $92, for the average retired worker. For the past 10 years, the lack of inflation has led to checks that only grow 1.65% per year on average.
The Social Security Administration hasn’t reaped so many benefits year after year since 1982.
A typical retired employee will now receive $1,657 per month from the following year, while a typical couple’s benefits will increase from $157 to $2,753 per month.
Taking into account the additional cost to taxpayers, the Social Security tax will be applied to income up to $147,000 in 2022, up from $142,800 this year.
COLA affects about 1 in 5 Americans, a total of 70 million people, including Social Security recipients, disabled veterans, and federal retirees. Nearly half of seniors live in a household where Social Security accounts for at least half of their income, and a quarter say they rely on checks for almost all of their income.
At the same time, Medicare Part B premiums are expected to increase from $148 a month to about $10.
Prices across the US rose at the fastest rate in nearly a decade as federal stimulus pumped trillions into the economy to boost consumer demand at a time when supply chains for common household goods were severely disrupted by the pandemic Be.
The consumer price index rose 5.4 percent in September from a year ago, slightly up from August’s gain of 5.3 percent, matching growth in June and July and keeping prices at a 13-year high.
The Social Security Administration hasn’t reaped so many benefits year-over-year since 1982.
The dramatic explosion of inflation this year reflects increasingly higher prices for food and energy, but also new and used cars, hotel rooms, plane tickets and furniture, among other goods and services.
COVID-19 has closed factories in Asia and slowed US port operations, forcing container ships to be anchored at sea and causing consumers and businesses to pay more for goods that don’t arrive for months Huh.
The higher prices are also outweighing the salary benefits many are able to obtain from businesses, which have to pay more to attract employees.
Average hourly wages rose 4.6 percent in September from a year earlier, a healthy increase, but not enough to keep up with inflation.
Federal Reserve Chairman Jay Powell and Treasury Secretary Janet Yellen have assured that inflation is only temporary, but declined to say when it will slow.
The consumer price index rose 5.4 percent in September from a year ago, slightly up from August’s gain of 5.3 percent and matching growth in June and July
Prices on a wide range of key commodities are rising as high inflation continues to hit US consumers
President Biden is meeting with supply chain executives and stakeholders on Wednesday afternoon and will then comment on the market crunch. Department of Transportation Pete Buttigieg and National Economic Council Director Brian Deez will also host a roundtable with union representatives, CEOs from companies such as Target, Home Depot, Samsung and FedEx, and other industry representatives.
Social Security is already paying retirees more money than payroll taxes, made worse by the coronavirus pandemic taking tens of millions of people out of the workforce.
Improving life expectancy and declining fertility rates have led to an aging population in the US, which certainly affects the nation’s social safety net for the elderly.
Social Security is due to run out of money in its trust fund by 2033, at which point it will only be able to hand over money it earned from workers — about 76% of gains.
In 1935, the year the program began, there were approximately 150 employees for each retiree. Today, according to the SSA, there are only 2.7. This number is only expected to decrease over the next 15 years.
Mark Goldwyn, budget expert on the Committee for a Responsible Federal Budget Prediction A new boost in payments a year earlier, could make Social Security bankrupt by 2032.