COLA Social Security 2023 Updates – Just Days Until Next Round of $4,555 Checks – See Payment Increase by State
ONLY two days remain until Social Security recipients receive their next round of payments on February 15th.
The checks total up to $4,555, with the exact schedule depending on your date of birth.
Based on this date, monthly payments go out on the second, third, and fourth Wednesday of the month.
For example, if your date of birth falls between the 1st and the 10th, your Social Security payment will be filed on the second Wednesday of every month.
If your date of birth falls on the 11th-20th, it is filed on the third Wednesday of each month, and if your date of birth falls on the 21st-31st, it is filed on the fourth Wednesday of each month.
In 2023, beneficiaries saw an 8.7 percent increase in COLA. That means they can now receive payments worth up to $4,555, with monthly amounts increasing by an average of $140.
Additionally, several states opted to increase SSI payments as recipients experience record inflation.
All payments depend on the state, but New York offers an additional $87 per month for individuals or $104 for couples. Meanwhile, Alabama couples get a $120 premium.
Follow our COLA live blog for more news and updates…
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Social Security Credits, continued
You can earn a maximum of four Social Security points each year, and you must earn $6,040 to earn the four maximum points.
Therefore, to get 40 credits, you need to work for at least 10 years.
You can purchase more than 40 credits.
However, 40 credits is the minimum number you need to be eligible for Social Security benefits.
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Social Security Credit Explained
To receive Social Security benefits, you must meet the minimum requirement of “work reasonably well.”
The Social Security Administration (SSA) defines “enough work” as earning 40 Social Security credits.
In 2022, a person will receive a Social Security credit for every $1,510 in covered income.
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How concessions work
The monthly amount of federal income from supplemental security is reduced by subtracting monthly qualifying income, according to the Social Security Administration website.
“In the case of an eligible person with an eligible spouse, the amount payable will be further divided equally between the two spouses. Some states supplement SSI benefits,” the website noted.
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Full retirement age, continued
The Social Security Administration (SSA) provides an online calculator to determine your FRA. They also provide a retirement age table.
Not only will you receive your full old-age pension if you wait until your FRA, but if you delay your pension beyond your FRA, your pension will increase each year until you reach age 70.
Conversely, if you start receiving benefits early, your total benefit will be reduced by a small percentage for each month prior to your FRA.
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How to determine your full retirement age
Your FRA (Full Retirement Age), sometimes referred to as normal retirement age, is the age at which you are entitled to full Social Security pension benefits.
The year and month you reach your FRA depends on your year of birth.
Before 1983, no calculation was required as the normal retirement age was consistently 65 years.
In 1983, Congress passed legislation redefining FRA.
FRA is now working on a sliding scale to adapt to the fact that people are living longer and generally healthier lives.
The current FRA increases by a few months for each year of birth, until it reaches 67 for people born in 1960 and later. This change applies to everyone born after 1938
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On which social security benefits are based
The product of the COLA and the benefit amount increases a person’s Social Security pension payment by about the same amount as the COLA, according to the Social Security Administration.
However, the exact calculation is more difficult.
A Primary Insurance Amount, or PIA, is used to calculate each Social Security payout.
Through a benefit formula, the PIA is tied directly to the primary beneficiary’s salary.
The COLA increases the PIA, truncating the result to the next lower cent.
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COLA rose in 2023
COLA (cost-of-living-adjustment) is the calculation used to determine how much Social Security recipients receive each year.
This year’s COLA is up 8.7 percent, meaning checks have averaged between $140 and $1,827.
The maximum benefit also increased to $4,555.
https://www.the-sun.com/money/7378673/cola-social-security-2023-increase-by-state-live/ COLA Social Security 2023 Updates – Just Days Until Next Round of $4,555 Checks – See Payment Increase by State
