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COLA Social Security payment schedule 2022 — Huge $361 monthly increase projected in 2023 – see when it will arrive

MILLIONS are expected to receive up to $361 more in benefits every month in 2023.

Each year, Social Security benefits are calculated based on a cost-of-living adjustment (COLA).

The Senior Citizens League (TSCL) has confirmed to The Sun its 2023 COLA estimate is at 8.6 percent.

The 8.6 percent increase would mean that the average benefit would climb by about $143 per month to $1,800, whereas the maximum would jump by roughly $361 to $4,555.

However, there are still four months of data to come in between now and October 2022, which is when the Social Security Administration (SSA) announces the COLA amount.

This year, the 5.9 percent COLA increase has brought the average Social Security benefit up to $1,657, and the maximum is $4,194 a month.

Read our COLA 2022 increase live blog for the latest news and updates...

  • Carsen Holaday

    Increases on resource limits

    The resource limit for households will increase by $250 to $2,500 for the continental states and the District of Columbia, Alaska, Hawaii, Guam, and the US Virgin Islands.

    The resource limit for households where at least one person is age 60 or older, or is disabled, will also increase by $250 to $3,750.

  • Carsen Holaday

    Four changes every year

    There are at least four changes that occur every year when it comes to Social Security:

    • Cost-of-living adjustments
    • Earnings test limit
    • The value of a work credit
    • Social Security tax limit
  • Carsen Holaday

    SS Benefit Eligibility Screening Tool, conclusion

    While none of the questions are very tough, you should be prepared to provide some information before completing the questionnaire, such as:

    • Work-related annual earnings.
    • Other sources of annual income
    • All of your assets’ total value.
    • Date of beginning of disability

    BEST, according to DisabilityBenefitsCenter.org, isn’t a Social Security Disability application. Your responses are kept fully private. You won’t be asked for your name, social security number, or contact information at all.

  • Carsen Holaday

    SS Benefit Eligibility Screening Tool, continued

    To utilize the BEST, you must first complete a questionnaire regarding the advantages you may be eligible for.

    The choices are as follows:

    • Disability assistance
    • Family benefits
    • Insurance
    • Medicare
    • Retirement
    • Spouse & widow(er)
    • Supplemental Security Income (SSI)
    • Veterans benefits
  • Carsen Holaday

    SS Benefit Eligibility Screening Tool

    Benefit Eligibility Screening Tool (BEST) is a collection of questions on the Social Security Administration’s website that might help you figure out if you’re eligible for Social Security Disability benefits.

    It also assists you in determining the Social Security Disability benefits you are likely to be eligible for.

    It takes around 10 minutes to complete the BEST survey, according to DisabilityBenefitsCenter.org.

  • Carsen Holaday

    What was the 2021 COLA?

    The 5.9 percent cost-of-living adjustment (COLA) for 2022 is a big jump from the 1.3 percent COLA in 2021.

    The significant increase was driven by a rise in inflation over the past year.

  • Carsen Holaday

    What will happen in 2034?

    An annual report from the SSA shared pessimistic news.

    It’s estimated in 2034, the Social Security Trust Fund will not have enough money to pay recipients.

    The SSA said it doesn’t expect to halt payments but rather monthly benefits will be reduced unless changes are made.

  • Carsen Holaday

    The future of Social Security

    According to the Social Security Board of Trustees’ 2021 annual report, the agency’s financial reserves will be drained by 2034, a year sooner than its 2020 report predicted, Yahoo reports.

    After then, annual taxes are estimated to pay just around 78 percent of the benefits.

    Longer life expectancies, a smaller working-age population, and an increase in the number of retirees are all contributing to the problem.

    By 2035, the number of people aged 65 and more in the United States will have risen to more than 78million, up from around 56 million now.

    As a result, more individuals will be withdrawing money from the Social Security system, while fewer will be contributing.

  • Carsen Holaday

    SS mistakes to avoid: claiming too early or waiting too long

    If you claim as early as possible, which is the age of 62, your benefit amount will be permanently reduced by up to 30 percent.

    Should you decide to claim until your full retirement age (FRA), you’ll get 100 percent of the monthly benefit.

    If you delay benefits up to the age of 70, you can get an extra 32 percent each month.

    However, you do not want to wait too long to claim where you end up putting yourself in a difficult financial situation.

  • Carsen Holaday

    Maximizing earnings for a larger payout

    It’s usually a good idea to review your Social Security earnings around the halfway point of the year.

    Your final Social Security payout is determined by a mix of when you apply for benefits and how much you earn over the course of your working lifetime.

    Only your 35 greatest years of earnings are counted by the Social Security Administration, and only earnings up to the yearly Social Security salary base are used to calculate your benefits.

    You’ll need to earn up to the yearly salary base for those 35 years if you want to get the highest potential Social Security payment when you retire.

    The Social Security pay base for 2022 is $147,000.

  • Carsen Holaday

    Rick Scott on Social Security

    Earlier this year, Senator Rick Scott, a Republican from Florida, issued what he calls an “11-point plan to rescue America,” in a document shared by Politico.

    In the plan, Scott demands that all federal legislation would sunset after five years, at which point Congress would have to pass it again.

    This could include Social Security and Medicare, which have budgets passed in federal legislation.

    Scott’s plan would also “force Congress to issue a report every year telling the public what they plan to do when Social Security and Medicare go bankrupt.”

  • Carsen Holaday

    What happens when the fund depletes?

    While both funds may be able to last a bit longer, it may only be a matter of time until they run out.

    To put a stop to it, Washington will have to act and address the issue.

    The Medicare Part A fund would only be able to cover 90 percent of benefits if this were not the case.

    In addition, Social Security recipients would only get 80 percent of their payments.

    The annual study said: “Lawmakers have many policy options that would reduce or eliminate the long-term financing shortfalls in Social Security and Medicare”

    “Taking action sooner rather than later will allow consideration of a broader range of solutions and provide more time to phase in changes so that the public has adequate time to prepare.”

  • Carsen Holaday

    SS mistakes to avoid: not checking earning record

    Your earnings record gives you an idea of how much your Social Security benefits will be, which makes it easier to plan for retirement.

    By checking this number on a yearly basis, you can also identify any errors that may pop up over time.

    If you notice errors early on, it gives you the opportunity to correct the mistakes by gathering proof of your earnings, such as your W-2 or pay stubs, and sending them to the Social Security Administration (SSA).

    Once the SSA has verified your claim, it will correct your record.

    Along with correcting errors, your earnings record will help you identify if you need to put more money into investments and retirement accounts.

  • Carsen Holaday

    Benefits may last a year longer than expected

    The Social Security Administration declared in 2021 that its Trust Fund will run out of money by 2033, maybe sooner.

    There is little risk that Social Security would “run out of money” because it is largely supported by payroll taxes on current employees.

    However, if the Trust Fund runs out of money, the SSA estimates that benefits will have to be cut to 78 percent of what they are now.

    Recently, though, the Social Security Administration (SSA) revealed in June 2022 that the Trust Fund is now expected to run at least until 2034, giving fully paid Social Security payouts one extra year.

  • Carsen Holaday

    Inflation’s effects on retirees’ pension

    The money that retirees get from their pensions is being eroded by inflation, according to CNBC, and many pension plans provide participants with a cost-of-living adjustment on a regular basis.

    However, these increases are minor in comparison to the 8.5 percent annual inflation rate recorded in March.

    Some pension schemes, particularly business pensions, do not include any COLA.

    As a result, retirees who rely on pension income are losing buying power, but those who rely on other sources of income, such as Social Security, see their benefits maintain up with inflation.

  • Carsen Holaday

    Lawmakers want to change how adjustments are calculated

    The Social Security 2100 Act, introduced by Rep. John Larson, recommends a move to the CPI-E, according to CNBC.

    During his campaign, President Joe Biden pushed for this move, as well as other Social Security improvements.

    Changes to the CPI-E, which was introduced in 1987 by the US Bureau of Labor Statistics on Congress’s orders, have also been advocated for by Social Security and senior advocacy groups such as The Senior Citizens League.

    In written evidence given for a December congressional hearing, Nancy Altman, head of the advocacy organization Social Security Works, stated that the transition would not result in a benefit increase.

    “It simply ensures that benefits will not erode, but will maintain their purchasing power over time,” Altman wrote.

  • Carsen Holaday

    Southern states affected by inflation

    According to a recent Merchant Maverick analysis, those living in Southern states may experience a greater financial blow than people living elsewhere.

    The organization looked at the states where inflation is growing the quickest and the extent to which local conditions may put a financial strain on households, GoBankingRates reported.

    One of the main conclusions is that the South is being most negatively impacted by inflation, which is driving prices up and quicker there than elsewhere in the nation due to lower median family incomes.

  • Carsen Holaday

    How long do you have to wait for benefits?

    Every year, Social Security payments are distributed to millions of elderly and disabled Americans.

    Social Security payouts are divided into three categories: retirement, survivor, and disability.

    The Social Security Administration (SSA) typically takes six weeks to process your application and begin providing benefits.

    This time period, however, might vary.

  • Carsen Holaday

    Who qualifies for Social Security?

    To qualify, seniors must have worked for a certain number of years and paid into the Social Security system for a certain amount of time.

    The amount received depends upon when you were born, your earnings history, and when you begin to claim benefits.

    Some households are also subject to paying taxes on their Social Security benefits, usually if significant additional earnings, including wages, self-employed earnings, dividends, or other taxable income.

    It’s important to note that Supplemental Security Income (SSI) differs from monthly Social Security benefits. SSI payments are not taxable.

  • Carsen Holaday

    Next year’s increase, continued

    Congress must take action in order to stop the change caused by high inflation.

    Ms Johnson said that the TSCL supports federal legislation that would provide a minimum COLA and attached an index that better tracks the costs of Social Security recipients.

    “Surveys by The Senior Citizens League have found strong support (around 63 percent of survey respondents) for providing 3% minimum COLA,” she added. 

    Currently, the COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the cost of popular goods and services.

    Democratic congressman John B. Larson of Connecticut proposed a bill in the fall that would switch the index to the CPI-E, which would track the costs of services and goods that seniors typically use.

    But it’s unclear if the bill will pass despite it having hundreds of co-sponsors. 

  • Carsen Holaday

    Next year’s increase may be bad news

    Despite the COLA adjustment, TSCL said that high inflation has lowered Social Security claimant’s buying power by 40 percent since the year 2000. 

    Also, the TSCL added that “COLAs have increased Social Security benefits by a total of 64 percent, yet typical senior expenses through March 2022 grew by more than double that rate – 130 percent.”

    The issue is Medicare Part B premiums, prescription costs, and other healthcare expenses aren’t “fairly” measured by the current index that benefits are tracked by, Mary Johnson, Social Security analyst with TSCL told The Sun.

  • Carsen Holaday

    Has the SS retirement age increased?

    While you can begin collecting Social Security benefits as early as age 62, your monthly payments will be decreased.

    For people born in 1937 or before, the full retirement age used to be 65. The complete retirement age for those born between 1943 and 1954 is 66.

    The full retirement age increases by two months each year, rising to 66 and 10 months for those born in 1959 from 66 and eight months for those born in 1958.

    Those born in 1960 who turn 62 in 2022 will reach full retirement age at the age of 67.

    For those born in 1960 or after, the full retirement age will remain 67.

  • Carsen Holaday

    How much more are married couples getting?

    The average Social Security benefit has increased by about $154 per month for couples due to COLA in 2022, according to the Social Security Administration (SSA).

    The increase has brought the average monthly payment for couples from $2,599 to $2,753.

  • Carsen Holaday

    How the 2023 COLA can change

    While The Senior Citizens League currently sees the 2023 COLA rising to 8.6 percent – that could change in the coming months.

    The Federal Reserve is taking action in an effort to cool down the high economic demand.

    The central bank has hiked interest rates twice this quarter.

  • Carsen Holaday

    Social Security was only a retirement program

    What we now know as Social Security only provided retirement benefits to the principal worker under the 1935 statute, according to the SSA.

    Survivor benefits and benefits for the retiree’s spouse and children were added to the statute in 1939.

    Disability benefits were added in 1956.

    The first national unemployment compensation program, state financing for different health and social programs, and the Aid to Dependent Children program were all included in the original 1935 statute.