Social Security Benefit Rises Dramatically This Year
"Social Security benefits will rise 5.9% in 2022, the most in four decades.
UPDATE in the comments adding in the amounts per year.
That is the NY Times headline. Here is what that means:
If your benefit in 2021 is $1,000.00 per month, your check will go up $59.00 per month.
If your check is $2,000.00 per month, your check will increase by $118.00 per month.
If your check is $3,000.00 per month, your check will increase by $177.00 per month and so on.
Back to The NY Times
"The increase, known as a cost of living adjustment, is the largest since 1982 and will affect nearly 70 million recipients, according to data from the Social Security Administration. It comes as consumer prices in the United States have seen their sharpest increase in years. The adjustment is tied to the Labor Department’s Consumer Price Index, which rose 5.4 percent in September from a year earlier.
Inflation has accelerated this year as the global economy recovers from pandemic-driven lockdowns. Early on, the price gains were driven by rebounding airfares, rates and other items that had seen a collapse in demand in 2020. More recently, shortages of products or challenges transporting them to consumers have added to the gains.
Consumer Price Index data released on Wednesday showed that prices jumped more than expected last month. The price gains came as housing prices firmed, and as food — especially meat and eggs — cost consumers more."
Also worth noting, We do not know the New amount that Medicare will subtract from our checks.
That is the same amount for all participants. So the numbers we will net will differ from the illustrations above. For lower amount recipients, sometimes the rise in Medicare costs can pretty much erase the gain in benefits.
For political and historic perspective, please note that Obama was by far the stingiest past President. (Whocoodathunkit) 2008, 2009, 2010,2011--NO increase.
Medicare cost has increased from $99 per month to $148.50 in recent years. Let's see what this years number will be.
Comments
Sounds good to me
Any idea when this is to begin this year?
January check.
NYCVG
Oh, that's next year
Seems we've already had a January this year.
I can see all the companies
that provide services and goods for seniors licking their chops on how much they can jack up their prices. After all, the money is just there for the taking. It's the American way!
Yikes-----
If the check is headed to your account then this will not be your reaction.
A 5.9 rise after 20 years of little to no relief, is something to cheer.
Rising prices, otoh, affect each of us differently and we all will make our own adjustments.
NYCVG
Not trying to be
a ton of bricks, just too many years of getting a raise, followed by an increase in my share of health insurance cost by equal or more than the modest raise. Like the vultures were just waiting.
Please see
my update and the actual numbers.
You are correct about the issue of Medicare deductions.
NYCVG
From what I can see it does not include the impact of rising
cost of energy.
The cost of gasoline and heating costs (natural gas and heating oil) which will go through the roof this winter.
The valid objection
is that the rise in SS benefit is Progressive but the rise in Medicare subtracted is Regressive. The seniors getting the biggest payments feel the rising Medicare cost the least.
does not make sense to argue about individual items that figured in the 5.9% or the fact that for so many many years, despite everything rising, the COLA stayed in place. THAT was the disgrace.
NYCVG
The gov uses
the Consumer Price Index and energy isn't part of it, if I remember right. There was also shenanigans around what and how much was included. Some medical gets left out, and food. If you used to afford steak, but can only afford hot dogs, you're still eating, right? So whats the problem? Eventually that leads to cat food. But you're still eating, right?
C.P.I
went up 5.9% this year.
IDK if this is a coincidence.
NYCVG
During the Trump tenure
my SS did go up twice
very little, but up nonetheless
Yes, It Did!
I have the numbers handy in case anybody seemed interested in facts:
Year-----------SS Increase
2021 1.3%
2020 1.6%
2019 2.8%
2017 0.3%
2016 1.7%
2015 1.7%
2014 1.5%
2013 1.7%
2012 3.6%
Again---coming in 2022 5.9%
Also in 2006 the Medicare deduction did not exist!!!!! By 2007, I see a Medicare deduction of $23.00 per month. Last year the Medicare deduction was $148.50 per month.
See what I mean about Regressive? The lowest incomes get hit the hardest. Thank you Obama.
NYCVG
ouch
thanks for the numbers
killing me slowly
I think lower incomes
pay less monthly for Medicare. Incomes above a certain threshold pay the full amount.
And at the moment, I don't have those numbers. Sorry.
Yes.
Up to I think, $87,000 yearlyly income----which is most of us---pays the $148.50. After that, there is a rise.
NYCVG
Glad to hear this but I also know what expect
First thing will be a letter from Washington's Health and Human services telling me that due to my upcoming increased income my food stamps will be 'X' amount lower and the cut has usually been close to half the expected SS increase.
Maybe with this big of an increase (I currently get less than $900 a month) the Food stamp cut won't be near the same percentage as before.
My section 8 rental assistance will change and I'll pay a little more rent, but usually that increase is very small.
No matter what happens I welcome the increase in my SS, and yes it pissed me off when under Obama I didn't get a nickle more for several years, all while he tried to make cuts in SS.
Our system
is brutal. I feel how frustrating this must be for you.
Using the $900 figure, the SS will be $51.00. Food stamps reduced. Then Medicare deduction going up by however much it is, will be the same deduction for you and the person whose SS goes up $200.00
Defines Regressive and Unfair.
NYCVG
The whole system is regressive and unfair.
Poor people pay he same amount as wealthy people do for driver's licenses. Also for car license plates. And more for car insurance often because they look at credit scores to set insurance rates, and if income low, they seem to feel one is a poor credit risk. There is no logic or fairness in this system.
Food stamp amounts are going up
$30 something a month increase. Maybe you won't be hit too hard. We'll hope.