Social Security Supplemental Income 2023 — Second $914 check drops in just days – but millions will miss out in April

Factors affecting social security programs

There are several important factors that affect several Social Security programs: the Social Security Old Age, Survivors, and Disability Insurance (OASDI) program and the Supplemental Security Income (SSI) program.

The SSA determines these parameters each October using the following statutory formulas. Two important parameters are the national average wage index and the cost of living adjustment (COLA).

Study finds Americans are missing out on $182,000 in Social Security contributions

New research by economists at Boston University and the Federal Reserve Bank of Atlanta found that American retirees are making a mistake that can cost them $182,000 in lifetime benefits, CBS News reported.

While the Social Security Administration pays full benefits at “full retirement age” (which ranges from 66 to 67 depending on date of birth), retirees can claim benefits when they turn 62.

However, this results in an overall 30 percent drop in monthly payments.

However, if you wait until 70, you get a 32 percent increase in payments.

Because only 6 percent of American workers wait until age 70 to file for Social Security, most Americans miss out on about $182,000 in payments if they file for Social Security early, the study found.

Negative effects of high COLA

Benefit increases are not always welcomed, as some of them can push people beyond the income limit required for other assistance programs.

A study conducted by The Senior Citizens League from May to July showed that 14 percent of participants had their support for low-income earners reduced because of their COLA.

Another 6 percent had lost access to one or more programs when COLA increased their income beyond the allowable limit.

This is how spousal allowance works

Spouse benefits can be up to half of your partner’s benefits.

In other words, if your partner’s benefit is $1,500, you could qualify for $750.

There are certain instances where you may not be entitled to spousal benefits.

This also applies if you have not been married for at least 10 years or have remarried.

You are not eligible for ex-spousal benefits if you remarry, but you may be eligible based on your new spouse’s records.

How concessions work

The monthly amount of Federal Supplemental Security Income is reduced by subtracting the 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.

How Social Security Affects Child Support

Child support regulations vary from state to state.

If you are supporting another child, the maximum amount that can be garnished is 50 percent of your Social Security benefit.

If you don’t support another child, 60 percent can be taken.

If the funding is more than 12 weeks overdue, 65 percent can be claimed.

Different rules apply to SSI, as SSI is protected even if the creditor can receive regular social security.

Meanwhile, Social Security Disability Insurance (SSDI) can be garnished in much the same way as Social Security.

Social Security concerns with budget cuts

Senator Joe Manchin said lawmakers must come together to make budget cuts because of the United States’ significant debt. However, he told reporters he wanted to protect Social Security no matter what.

“I’ve got 60 percent of my population, that’s all they’ve got, Medicare and Social Security,” the West Virginia senator told NBC’s Meet the Press earlier this month.

“Do you think I’ll go that route and put her in danger? No,” he said.

Manchin has proposed raising the cap on payroll taxes used to support the program.

“The easiest and quickest thing we can do is raise the cap,” Manchin said.