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COLA increase 2022 Social Security update – How much March checks will be as payments sent out NEXT WEEK

SOCIAL Security claimants can find out if they owe taxes on their monthly benefits.

If you are a claimant, you should have received Form SSA-1099, which will help you complete your tax return.

The SSA mails the form every January and it summarizes how much you received in benefits the previous year.

By using this form, you’ll find out if your monthly benefits are subject to tax.

If you have not received this form, or if you’ve misplaced it, you can request a new one using your online social security account.

Meanwhile, millions of American couples are set to get a huge cash boost next week.

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

That means the average monthly payment for couples will rise from $2,599 to $2,753.

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

  • How is Social Security funded?

    Social Security is funded through a dedicated payroll tax.

    Employers and employees each pay 6.2 percent of wages up to the taxable maximum of $142,800 in 2021, while self-employed Americans pay 12.4 percent, according to the Social Security website.

  • What is inflation? continued

    In a healthy economy, inflation is expected and usual.

    When inflation begins to surpass wage growth, as it does in the United States right now, it becomes a concern.

    The higher the rate of inflation, the less your money is worth since products and services are more expensive.

    Inflation is at its greatest level in four decades. The pandemic, as well as the lockdowns that went into place in 2020, are to blame for the economic decline.

    Businesses were impacted since many were forced to close or reduce hours, while consumers stayed at home for health reasons.

  • What is inflation?

    Inflation is the rate of increase in prices over a given period of time.

    The price increases affect goods and services.

    Many reasons can attribute to this including labor shortages, wage increases, raw material cost hikes, and even government spending.

    The American economy is taking a hit with increased pricing across the board including on basic necessities like gasoline, food, and clothing.

  • March Social Security checks reflecting COLA

    The second batch of Social Security payments, reflecting the 5.9 percent cost of living adjustment, was mailed out in February, and beneficiaries are now anticipating the third, which will arrive this month.

    For those who qualified, the COLA boost was the greatest in over 40 years, and it couldn’t have come at a better time.

    Inflation in the United States is already at 7.5 percent, and it is projected to continue to rise as the pandemic and supply chain concerns it has produced continue to flare.

  • Ohio teachers, conclusion

    According to Neville, the return of the COLA would most likely be a one-time event.

    Other pension schemes have preserved or restored COLAs, which has angered retired teachers.

    The State Employees Retirement System (SERS) announced a 2.5 percent COLA for its pensioners at the same Retirement Study Council meeting.

  • Ohio teachers, continued

    State Teachers Retirement System (STRS) Director William Neville informed the legislature’s Retirement Study Council that STRS is now 80.1 percent funded, up from 77.4 percent in the previous fiscal year, thanks to “strong investment returns.”

    STRS is a mutual fund that manages $94.5billion in assets.

    STRS had announced it would consider suspending the COLA as part of a five-year actuarial assessment, according to Neville.

    He said he’d look into things like mortality and asset-liability as part of it.

    “The lever that looks to me like what the board is focused on is a 2% COLA for retirees and a reduction or elimination of what would be a 35 years and age 60 requirement for actives going into effect in 2026,” Neville said.

  • Ohio retired teachers may receive COLA

    It’s been four years since Ohio’s pension system gave half a million retired teachers cost-of-living raises.

    Teachers have screamed about how the lack of raises has been cutting into their benefits as inflation rises.

    That might be changing after months of demonstrations and unhappiness from seniors who rely on the pension system since they don’t pay into Social Security, according to WOSU.org.

  • What is Supplemental Security Income?

    The Social Security Administration (SSA) pays cash benefits to people who are not earning a significant income.

    One of the two SSA programs is Supplemental Security Income (SSI).

    SSI makes monthly payments to people who have limited income and assets.

    Whether you can get it depends on your income and the things you own. 

  • Replacement Social Security card, part two

    You can generally apply for a replacement card online in other states if the below applies:

    • Are a US citizen age 18 or older with a US mailing address
    • Are not requesting a name change or any other change to your card
    • Have a driver’s license or state-issued identification card from one of the many participating states or the District of Columbia

    If you need help, you can contact the Social Security Administration (SSA) by calling 1-800-772-1213 or by visiting your local social security office.

  • Getting a replacement Social Security card

    If you lose your card, you may not need a replacement one as simply knowing the social security number is enough in many cases.

    However, if you’d like a replacement card, you can order it online via your Social Security account in most states.

    The exceptions are Alaska, Minnesota, Nevada, New Hampshire, Oklahoma, and West Virginia.

  • How to get a Social Security card

    You must first apply for a Social Security number before receiving a card.

    You’ll need to provide a variety of original documents depending on where you were born and whether you’re a US citizen.

    You’ll need to present proof of US citizenship and age, such as a US birth certificate or a US passport if you’re a US-born adult citizen.

    Because one document may only be used for two purposes – such as citizenship and age – you must present at least two distinct documents.

  • Social Security won’t replace income after retirement

    When you plan for retirement, it’s important to remember that Social Security is only meant to cover about 40 percent of pre-retirement income.

    The maximum benefit is $3,345 a month for someone who files for Social Security in 2022 at full retirement age (FRA).

    FRA is the age at which you qualify for 100 percent of the benefit calculated from your earnings history.

    This is $40,140 annually. However, the average rent in the United States is about $1,100 to $1,200.

    This leaves a retiree with $25,740 annually, which is just above the poverty line.

  • Why you should retire at 70, continued

    If you delay benefits for an additional 12 months, you’ll receive 108 percent of the monthly benefit and if you wait until 70, you’ll receive 132 percent.

    If you fully take advantage of everything from your work and earnings history to delaying your claim – it’s possible you can earn the maximum Social Security benefit.

    In 2022, the maximum benefit will be boosted to $4,194 a month.

  • Why should you retire at 70?

    Waiting to retire at 70 before claiming Social Security benefits gives you more for not retiring at 62.

    If you claim at 62, you could see your benefits reduced as much as 30 percent, according to the Social Security Administration.

    If you wait until your full retirement age, you’ll get 100% of your monthly benefit.

  • Medicare price increase explained

    Some retirees don’t think they’ll be able to cover Medicare costs despite the COLA bump.

    Medicare’s Part B monthly premium for 2022 will increase from $148.50 to $170.10. The $21.60 jump is the largest price hike in the program’s history.

    Part B of the package covers doctor visits and other outpatient services like screening.

    When the price hike was announced, Centers for Medicare & Medicaid Services (CMS) officials stressed that the 14.5 percent increase would be covered by this year’s COLA.

  • Has the Fair COLA for Seniors Act passed?

    The Fair COLA for Seniors Act has only been introduced in the House.

    The section of Congress’ website that shows legislation being discussed shows that it was introduced last year and that Dina Titus is indeed one of the cosponsors.

  • Representative promotes COLA act

    Representative Dina Titus of Nevada promoted a COLA-related act she co-sponsored on Twitter back in January.

    “Many seniors live on fixed incomes derived from Social Security, making it vital that COLAs reflect rising costs and other necessities,” she wrote.

    “I’m a co-sponsor of the Fair COLA for Seniors Act to protect these earned benefits against rising costs for prescription drugs and other care.”

  • COLA conditions, continued

    When a COLA rise is not authorized, Medicare Part B rates for around 70 percent of beneficiaries who have their premiums deducted from their Social Security payments stay unchanged.

    The remaining beneficiaries, however, must pay the Medicare Part B premium increases, including those with higher earnings, those who did not enroll in Social Security via their employment, and new beneficiaries.

    The normal monthly Medicare Part B cost is $148.50 in 2021, but it climbs to $170.10 in 2022, a $21.60 increase from 2021.

  • COLA conditions

    The CPI-W and the employer-contracted COLA percent are both used to calculate COLA.

    The CPI calculates the rate of inflation and compares it year after year.

    Recipients do not get a COLA if consumer prices fall or if inflation is not strong enough to justify a COLA increase.

    There will be no COLA increase if the CPI-W does not rise.

  • COLA could affect SNAP benefits, part two

    The COLA increase can have an effect on people who are part of the supplemental nutrition assistance program (SNAP).

    The program helps low-income people.

    Households need to meet certain income requirements to receive assistance.

    Americans on Social Security, who also receive SNAP benefits, may be at risk of losing the SNAP benefit if their income level exceeds the requirement.

  • COLA could affect SNAP benefits

    Millions of Social Security beneficiaries are in line to get a larger payment in 2022.

    The Social Security Administration (SSA) increased its cost-of-living adjustment (COLA) to 5.9 percent.

    The increased Social Security payment will be reflected in the January 2022 check.

    The extra money will be welcomed by Social Security beneficiaries as the latest report from the Commerce Department found consumer prices rose 5.7 percent in a year through November 2021.

  • Social Security Benefits: Spousal

    If you have not worked or do not have enough Social Security credits to qualify for your own Social Security benefits, you may be able to receive spousal benefits.

    The spouse of a retired worker can receive up to half of their spouse’s benefits.

    To qualify for spouse’s benefits, you must be either at least 62 years of age or any age and caring for a child entitled to receive benefits on your spouse’s record and who is younger than age 16 or disabled.

    If you choose to begin receiving spouse’s benefits before you reach full retirement age, your benefit amount will be permanently reduced.

    The spousal benefit continues until one spouse dies, after which the survivor may be eligible for survivor benefits.

  • Social Security benefits: Supplemental

    Supplemental Security Income (SSI) is a government program that assists persons who are unable to earn enough money on their own.

    Adults with disabilities, children with disabilities, and those aged 65 and over are eligible. Individuals with sufficient job experience may be eligible for SSI payments in addition to disability or retirement benefits.

    Individuals receive different amounts depending on their other sources of income and where they live.

  • Social Security benefits: Survivors

    Survivors benefits can assist employees and retirees’ families bridge financial gaps.

    Widows and widowers, divorced spouses, and children are often eligible receivers.

    The amount of benefits is determined by several criteria, including the worker’s age at death, pay, the ages of the survivors, and the survivors’ relationship to the dead.

    A death benefit also exists for survivors, which is a one-time payment of $255 sent to a dead worker’s spouse or children.

  • Social Security benefits: Disability

    Disability payments help persons who are unable to work due to a disability.

    You must have worked for a specific number of years to be eligible for Social Security Disability Insurance (SSDI) payments, just as you must have worked for a certain number of years to be eligible for retirement benefits.

    Your monthly benefit amount is determined by your pre-disability wage, and the quantity of labor you require is determined by your age.

    Your spouse or divorced spouse may be eligible for SSDI payments as well.

https://www.the-sun.com/money/4788197/cola-social-security-2022-march-check-payments-increase/ COLA increase 2022 Social Security update – How much March checks will be as payments sent out NEXT WEEK

Caroline Bleakley

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