angel – Advocates are calling for a one-time $1,400 stimulus check for older Americans, citing the potential repercussions of an upcoming Social Security boost.
Millions of retirees will get social security Profit up 5.9% for 2022. What follows is the biggest living adjustment in 39 years rise in inflation As the economy struggles to overcome the drag coronavirus pandemic.
But advocacy groups say the increase in monthly checks may not be enough for recipients — and it may even do more harm than good.
In a letter signed by Richard Delaney, president of the Senior Citizens League, a nonpartisan advocacy group, the group is calling on members of both the House of Representatives and the Senate to work on a one-time $1,400 stimulus check. For Social Security beneficiaries.
“We believe a special incentive for Social Security recipients could help defray higher costs if next year’s COLA bumps them into a higher tax bracket, leading to higher tax rates on their income and higher Medicare Part B premiums.” But there is surcharge,” the letter reads.
According to estimates from the Social Security Administration, COLA, as it’s commonly called, amounts to an additional $92 per month for the average retired employee. It’s a sudden break from a long lull in inflation that saw Average cost of living adjustment per year only 1.65% in the last 10 years.
With the increase, the estimated average Social Security payment for a retired employee would be $1,657 per month over the next year. A typical couple’s benefits would increase from $154 to $2,753 per month.
But that’s only to help cover rising costs that recipients are already paying for food, gasoline and other goods and services.
COLAs affect the household budget for one in five Americans. This includes Social Security recipients, disabled veterans and federal retirees, about 70 million people. For baby boomers going into retirement within the past 15 years, this will be the biggest increase they’ve ever seen.
Policymakers say the adjustment is a safeguard to protect Social Security benefits against loss of purchasing power, not a pay increase for retirees. About half live in households where Social Security provides at least 50% of their income, and one-quarter rely on their monthly payments for all or almost all of their income.
This year’s Social Security Trustees report warns about the long-range financial stability of the program. But little is talked about reforms in Congress, which MPs consume. President Joe Biden’s Huge Household Law and partisan conspiracy end National debt. Social Security cannot be addressed through budget reconciliation process Democrats are trying to use Biden to deliver on promises.
Social Security’s turn will come, said Representative John Larson, D-Conn., chairman of the House Social Security subcommittee and author of legislation to tackle shortages that would leave the program unable to pay full benefits in less than 15 years. . His bill would raise payroll taxes, while also changing the COLA formula to give more weight to health care expenses and other costs that fall more heavily on the elderly. Larsen said he intends to move on next year.
Social Security is financed by payroll taxes collected from workers and their employers. Each pays 6.2% on wages up to a limit, which is adjusted for inflation each year. Next year the maximum amount of income subject to Social Security payroll taxes will increase to $147,000.
The financing scheme dates back to the 1930s, The brainchild of President Franklin D. Roosevelt, Joe believed that the payroll tax would foster a sense of ownership among average Americans that would protect the program from political interference.
The Associated Press contributed to this story.