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Will Social Security recipients get an extra $200 a month in 2022?

finance.yahoo.com - Social Security: New Bill Could Give Seniors an Extra $2,400 a Year

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Social Security recipients could get an additional $2,400 a year in benefits if a new bill recently introduced to Congress wins approval — something seniors would no doubt welcome as surging inflation wipes out their annual cost-of-living increases. Social Security: Women Get $354 Per Month Less Than Men – Here’s Why

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The Social Security Expansion Act was introduced on June 9 by U.S. Rep. Peter DeFazio (D-Ore.) and U.S. Sen. Bernie Sanders (I-Vt.), CBS News reported. Under terms of the bill, anyone who is a current Social Security recipient or who will turn 62 in 2023 would receive an extra $200 in each monthly check. The bill is timely for a couple of reasons. First, it follows a Social Security Administration announcement earlier this month that Americans will stop receiving their full Social Security benefits in about 13 years without actions to bolster the program.

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It also comes during a period of historically high inflation that has a particularly big impact on seniors living on fixed incomes, many of whom rely solely on Social Security payments. This year’s Social Security Cost-of-Living Adjustment (COLA) of 5.9% is based on inflation figures from 2021. But since then, inflation has pushed well above 8%, meaning Social Security recipients today are actually losing money. The new bill aims to ease the financial strain by boosting each recipient’s monthly check. The average monthly Social Security check is about $1,658, meaning a $200 increase would represent a 12% boost. “Many, many seniors rely on Social Security for the majority, if not all, of their income,” said Martha Shedden, president of the National Association of Registered Social Security Analysts. “$200 a month can make a significant difference for many people.” In addition to boosting the monthly payment, the bill also would make several changes to the program itself. One would be to base the annual COLA on the Consumer Price Index for the Elderly (CPI-E) instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

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Another change would be adding more funding by applying the Social Security payroll tax on all income above $250,000. Currently, earnings above $147,000 aren’t subject to the Social Security tax. Even if the bill in its current form doesn’t pass Congress, observers expect some kind of change to Social Security to ensure it serves the needs of recipients well into the future. “I’m confident changes will be made,” Shedden said. “I don’t know if this is the bill that will pass, but there is more and more movement on it.”

How much will SSI check be in 2023?

SSI amounts for 2023 Recipient Unrounded annual amounts for— Monthly amounts for 2023 2022 Eligible individual $10,092.40 $914 Eligible couple 15,136.93 1,371 Essential person 5,057.77 458 1 more row

ssa.gov - SSI Federal Payment Amounts for 2023

Maximum Federal Supplemental Security Income (SSI) payment amounts increase with the cost-of-living increases that apply to Social Security benefits. The latest such increase, 8.7 percent, becomes effective January 2023.

SSI amounts for 2023

The monthly maximum Federal amounts for 2023 are $914 for an eligible individual, $1,371 for an eligible individual with an eligible spouse, and $458 for an essential person. In general, monthly amounts for the next year are determined by increasing the unrounded annual amounts for the current year by the COLA effective for January of the next year. The new unrounded amounts are then each divided by 12 and the resulting amounts are rounded down to the next lower multiple of $1. Calculation details Recipient Unrounded annual amounts for— Monthly amounts for 2023 2022 2023 a Eligible individual $10,092.40 $10,970.44 $914 Eligible couple 15,136.93 16,453.84 1,371 Essential person 5,057.77 5,497.80 458 a The unrounded amounts for 2023 equal the unrounded amounts for 2022 increased by 8.7 percent.

Payment reduction

The monthly amount is reduced by subtracting monthly countable income. In the case of an eligible individual with an eligible spouse, the amount payable is further divided equally between the two spouses. Some States supplement SSI benefits.