MILLIONS of Americans are in line to get their Social Security benefit payment with a cost of living adjustment to help fight rising costs amid inflation.
The average benefit would increase by about $143 per month to $1,800, while the maximum benefit would increase by around $361 to $4,555.
Social Security benefits are determined by the yearly COLA, which is based on the consumer price index.
Those born between the first and 10th of the month should expect their first payout on June 8, which is the second Wednesday of the month.
Those with birthdays between the 11th and 20th of the month will receive payments on the third Wednesday of the month, while those with birthdays between the 21st and 31st will receive payments on the fourth Wednesday of the month.
Read our COLA 2022 increase live blog for the latest news and updates…
When did Social Security begin?
Franklin D. Roosevelt signed the Social Security Act on August 14, 1935, according to the Social Security Administration.
In January 1937, taxes were initially collected, and the first one-time lump-sum payments were paid in the same month.
In January 1940, regular monthly rewards were established.
When did Medicare begin?
Although Medicare was signed into law on July 30, 1965, it was not until July 1, 1966, that recipients were permitted to sign up for the program, according to the Social Security Administration.
First individual to receive benefits from SS
According to the SSA, a man named Ernest Ackerman earned a 17-cent payout in January 1937.
During the start-up phase, from January 1937 to December 1939, this was the only type of benefit available: a one-time, lump-sum payout.
How is COLA calculated?
“COLAs are based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). CPI-Ws are calculated on a monthly basis by the Bureau of Labor Statistics,” the Social Security Administration shared.
When your disability worsens, part three
“There really isn’t a maximum disabled worker benefit amount that corresponds to the maximum retired worker benefit amounts we post on our website,” the SSA previously told The Sun.
Regardless of how much you’re receiving from either or both programs – your benefits could increase if your disability worsens over time.
If this happens, this could force you to work fewer hours – thus impacting your earnings – meaning you might be eligible for a higher benefit.
Also, keep in mind, that you could lose those benefits if your health winds up improving to the point where you are no longer considered disabled.
When your disability worsens, part two
In 2022, the SSI average benefit is $621 per month this year, up by $34 from 2021. This equals $7,452 each year.
As far as SSDI goes, the amount you receive is a bit more complicated.
The benefit amount will depend on the age you became disabled, your employment history (including the average amount of income you once earned), and your period of eligibility.
When your disability worsens to impact income
To qualify for SSI, individuals can’t have more than $2,000 in assets, while couples can have up to $3,000.
For SSDI, the monthly earnings limit is $1,350 for most claimants – but that is boosted to $2,260 if a beneficiary is blind.
Social Security isn’t enough to live off of
The majority of people are unable to survive solely on Social Security, Go Banking Rates reported.
It will give 30 percent to 40 percent of your pre-retirement income on average.
Because you’ll have multiple streams of income to supplement Social Security, the more you put in a retirement plan like a 401k or IRA, the more flexibility you’ll have in controlling your retirement spending.
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.
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
- Spouse & widow(er)
- Supplemental Security Income (SSI)
- Veterans benefits
SS Benefit Eligibility Screening Tool
A 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.
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.
When was CPI introduced?
The Consumer Price Index (CPI) was created to determine appropriate pay increases during World War I, a period of rapidly rising prices, according to Encyclopedia.com.
In 1935, the Social Security retirement system was founded.
In the decades that followed, Congress increased Social Security benefits on a regular basis to compensate for slow inflation as assessed by the Consumer Price Index (CPI).
CPI: what is CPI-E?
The CPI-E is a weighted average of price changes for the same set of item strata as the CPI-U and CPI-W, taken from the same sample of urban regions.
Retail establishments in the CPI are chosen for pricing based on data from a separate survey of all metropolitan residents.
CPI: what is CPI-U?
The CPI-U is a price index that tracks the average change in prices paid by consumers for goods and services over time.
Because it covers more demographics than the CPI-W, it provides a more comprehensive assessment of price trends.
- Clerical workers
- Self-employed professionals
- Technical workers
- Temporary workers
CPI: what is CPI-W?
This kind of CPI is used by the Social Security Administration to determine inflation and apply cost-of-living adjustments to Social Security and Supplemental Security Income.
The Bureau of Labor Statistics utilizes the same processes to compute CPI-W as it does for CPI, but with elements that impact specific demographics.
What is CPI?
Companies may use the Consumer Price Index, or CPI, to decide how much to modify compensation owing to inflation.
One of the most often used measures for measuring inflation is the Consumer Price Index.
Help for recipients, continued
Financial assistance not listed below may affect SSI eligibility or payment amount, according to the Social Security Administration.
Find more information about the programs offered on the administration’s Emergency Assistance for Homeowners and Renters webpage.
Additional help for recipients
The Social Security Administration is informing recipients about help available for homeowners and renters during the coronavirus pandemic.
Financial help can affect eligibility for Supplemental Security Income (SSI) or monthly SSI amounts.
However, emergency financial assistance received from the following programs and funds will not count against a recipient’s eligibility or payment amount, according to the Social Security Administration:
- Emergency Rental Assistance Fund
- Emergency Assistance for Rural Housing/Rural Rental Assistance
- Homeowner Assistance Fund
- Housing Assistance and Supportive Services Programs for Native Americans
If you delay to notify the SSA
When you delay or fail to notify the government agency, there can be consequences, such as a delay in your monthly benefit check or errors on your earnings record.
If you have experienced more than one life-changing event and your income has gone down, you should contact the SSA at
1–800–772–1213 to have your monthly benefit adjusted.
If you are unable to manage funds
Sometimes, people who receive Social Security benefits are not able to handle their own financial affairs.
In those cases, the SSA will conduct a careful investigation, and then appoint a relative, friend or another individual or organization to handle their Social Security matters.
All in all, when any of these events happen, you should notify the SSA immediately.
Changes that can affect benefits: recipient death
If the deceased was receiving Social Security benefits, you must return the benefit received for the month of death and any later months.
For instance, if the person died in September, you must return the benefits paid in October.
Changes that can affect benefits: pension
The government pension offset (GPO) affects spouses, widows, and widowers with pensions from a federal, state, or local government job.
It reduces Social Security benefits in some cases.
If you receive a pension from a government job but did not pay Social Security taxes while you had the job, the SSA will reduce your Social Security spouse, widow, or widower benefits by two-thirds of the amount of your government pension.
Changes that can affect benefits: criminal conviction
If you’re convicted of a criminal offense and sentenced to jail or prison for more than 30 continuous days, your Social Security benefits will be suspended.
Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) payments generally are also not payable for months that you are imprisoned.
However, once you are released, the SSA will reinstate your benefits starting with the month following the month of your release.