Last year, the US Bureau of Labor Statistics released the COLA adjustment with a increase of 5.9 percent. Due to the enormous increase, the maximum money that can be claimed through social security is the highest in years. The maximum that can be claimed has increased to $49,497 per year, or $4,124 per month.
For the average person receiving the benefit, this means: your monthly payment is increased to $1657, an increase of more than $100 from 2021. However, this impulse is offset by rapidly rising inflation in the US. In the latest piece of public data, inflation rose 7 percent from a year earlier. The 5.9 percent increase is negligible.
This chart shows that the current 7% CPI is the highest in 40 years.
Now consider that they changed the CPI in the 1990s to minimize inflation so that the Social Security COLA would slow down.
Real inflation is likely to be 12% to 15%. pic.twitter.com/MWMFYlW6eB
— Wall Street Silver (@WallStreetSilv) January 12, 2022
How can this be achieved?
To receive SSI, one must meet two eligibility requirements. One must either have the 65 years old, blind and/or disabled. In addition, they must limited income and resources as the program is needs-based and aims to help beneficiaries to cover basic costs for food and shelter.
In order to claim the highest amount of Social Security benefits, the main factors taken into account are retirement age and the 35 years in which the employee earned the most, as an annual average. In 2020, around 74.2 percent of those receiving Social Security benefits were retirees..The maximum benefit amount depends on the year in which you retire. Those who choose to retire before age 65 are penalized with reduced benefits. These are the splits for 2021, depending on retirement age:
- $3,895 for someone who files a tax return at age 70,
- $3,148 for someone who applies at full retirement age (currently 66 and 2 months),
- $2,324 for someone who applies on 62
How will the increase for 2022 affect benefits?
The COLA increase affects all aspects of social security, not just pensions.
For those who receive disability insurance, the threshold is increased by $40 for non-blind recipients and $70 for blind beneficiaries. This translates to $1,350 and $2,260 per month, respectively. Those who receive trial period benefits can get an additional $30 per month for a total of $970.
The Supplemental Support Income (SSI) Federal Standard Payments will rise to $841 per month for individuals, an increase of $47. For couples, they could receive an additional $70 per month for a total of $1,261 in 2022.