MILLION Social Security checks worth up to $1,657 are being mailed today to seniors across America.
Those born on the 21st to the 31st of the month will be paid benefits on the fourth Wednesday of every month.
This is the largest COLA increase in about 40 years and means checks will increase by an average of $92, from $1,565 to $1,657.
This comes as families with children can automatically receive an average monthly Supplemental Security Income (SSI) payment of $687.
About five million people received SSI checks last month because the program was designed to help seniors as well as adults and children with disabilities.
The benefits, with an average value of $687, are also available to disabled children in low-income households so their parents can cover their medical expenses.
Read our COLA 2022 boost live blog for the latest news and updates…
Are there other types of COLA?
Employees who are forced to complete work in places where the cost of living is higher than their home city can receive temporary COLAs from some employers, such as the US military.
Upon completion of the mission, the COLA will expire.
How long do you have to wait to receive benefits?
Each year, Social Security payments are distributed to millions of elderly and disabled Americans.
Social Security payments fall into three categories: retirement, survivorship, and disability.
It usually takes six weeks for the Social Security Administration (SSA) to process your application and start providing benefits.
However, this time period is subject to change.
New job? Wait to request
Some of the money you earn in your Social Security check is weighted by your income history.
If you haven’t made a lot of money in your career and you just got a better paying job, it makes sense to continue accumulating your benefits.
Present, the maximum taxable salary is $142,800 in 2021, but that number will be increased to $147,000 next year.
Once your earnings exceed that wage limit, you won’t be taxed on it for Social Security. In addition, many employers have is raising wages in an attempt to attract workers in the past year or so.
Waiting to claim Social Security can be a good opportunity to improve your income history.
How many people will see the increase?
About 70 million won Social Security and Recipients of Supplemental Social Security Income will see benefits increase by 5.9 percent in 2022.
Approximately 8 million SSI beneficiaries begin receiving the increased benefits on December 30, 2021.
The 5.9% cost of living (COLA) adjustment will begin for more than 64 million Social Security beneficiaries this month.
Four annual changes
There are at least four changes happening every year when it comes to Social Security:
- Adjust the cost of living
- Income test limit
- The value of labor credit
- Social Security tax limits
Welfare schedule for 2022
Social Security benefits are released on a scheduled basis depending on the claimant’s date of birth.
Those with birthdays between the 1st and 10th of the month can expect their first payment on the second Wednesday of the month, which is January 12.
The third Wednesday of the month, or January 19, is reserved for people with birthdays between the 11th and 20th.
Claimants with birthdays between the 21st and 31st can receive payments on the Wednesday of the month, which is January 26.
This schedule is kept stable through Year 2022.
Why is there an increase?
The Labor Department released new inflation numbers on January 12 showing that inflation hit 7% in December, the highest rate since 1982.
SSDI also increased COLA
The 5.9 percent COLA increase also applies to Social Security Disability Insurance (SSDI).
The average monthly allowance for disabled workers will increase by $76, from $1,282 to $1,358 a month.
SSDI provides relief to people with disabilities who are no longer able to work or at their previous capacity.
This benefit is intended to partially replace a qualified worker’s salary.
Cash flow may not change
Mary Johnson, Social Security and Medicare policy analyst for the Senior Citizens League, warned Americans that their cash flow could stay the same.
“We will still have this huge problem with prices rising faster than COLA,” she said CBS News.
“So retirees, anyone living on a fixed income, needs to be aware that 5.9% may look like a bigger increase than we’ve ever gotten.
“But once they go through the household budget, they realize that it still won’t be able to pay all the growing bills.”
Johnson added that inflation is expected to continue rising into 2022.
What are Social Security credits?
To collect Social Security benefits, you must meet the minimum requirement of doing “enough work”.
The Social Security Administration (SSA) defines “fully employed” as earning 40 Social Security credits.
In 2022, an individual will receive one Social Security credit for every $1,510 of covered income.
You can get up to four Social Security credits per year, and you must earn $6,040 to get up to four credits.
Therefore, to earn 40 credits you have to work for at least 10 years.
You can earn more than 40 credits. However, 40 credits is the minimum you need to qualify for Social Security benefits.
https://www.the-sun.com/money/4553010/cola-increase-2022-social-security-payments-ssi-cost-living/ COLA increases Social Security 2022