Social Security Payments Rise Dramatically in 2022, New Bill Could Increase Payments
The Social Security Administration recently announced that due to high levels of inflation this year, it will increase Social Security payments by 5.9% in 2022, the biggest increase in nearly 40 years. And a new bill presented to Congress could further increase these payments.
During the election campaign, President Joe Biden vowed to review the Social Security program, which is currently expected to run out of money by 2034, according to Representative John Larson, D-Conn., Who introduced the new bill. This lack of funds would lead to a 20% reduction in benefits. Among some of the points of Biden’s proposal was the suggestion to make payments that represent at least 125% of the national poverty level to retirees.
Biden also campaigned to raise Social Security’s income tax threshold to a maximum of $ 400,000, which would generate $ 700 billion in additional income over ten years, according to Forbes. If passed, Larson’s bill could do just that.
If you have Social Security benefits and need more cash, consider taking out a personal loan when interest rates are at their lowest. Visit Credible to fill in your information and find your personalized rate.
SOCIAL SECURITY CHECKS WILL INCREASE AT THE HIGHEST RATE IN NEARLY 40 YEARS
Social security 2100 introduced in the Ways and Means Committee
House Ways and Means Social Security Subcommittee Chairman John Larson, D-Conn., introduces social security 2100: a sacred trust in committee Tuesday. The bill seeks to expand social security benefits and prevent the program from running out of funds. It would also be increase payments by about 2% for the average beneficiary.
The legislation currently has nearly 200 cosponsors and has been approved by more than 100 advocacy groups, according to Larson.
“Social Security 2100: A Sacred Trust Will Extend Benefits and Strengthen Social Security,” Larson said in a statement. “The pandemic only underscored what we already knew and exacerbated systemic inequalities – current benefits are not enough. Five million older people live in poverty due to long-standing discrimination in the labor market that mainly affects people of color and women.
“These are our sisters, brothers, aunts, uncles and neighbors,” he continued. “For too long, Congress has given up on its duty to improve benefits. With 10,000 Baby Boomers a day becoming eligible and with Millennials in greater need of Social Security than any other generation, now is the time for Congress. to act is now. “
If you’re collecting Social Security benefits but struggling to meet your financial obligations, consider taking out a personal loan to consolidate other high-interest debt. Visit Credible to compare multiple lenders at once and see which one has the best interest rate for you.
INFLATION MOVES HIGHEST IN 13 YEARS – THIS IS WHAT IT MEANS FOR INTEREST RATES
What changes would the new social security bill bring?
Larson’s bill is pushing the benefit expiration date back to 2038 in order to give Congress more time to find a long-term solution to the looming pension crisis. In the meantime, it would also increase minimum benefits and raise the payroll tax income threshold to $ 400,000 from the current $ 142,800.
Here are some of the other changes the new bill would make, if passed:
- Increases the average benefit for all social security recipients by around 2%
- Improves the Annual Cost of Living Adjustment Formula (COLA) to better manage increases in inflation as measured by the Consumer Price Index (CPI)
- Sets minimum payments at 25% above the national poverty line
- Improves benefits for widows and widowers in a two-earner household
- Repeals Deal Elimination Provision (WEP) and Government Pension Compensation (GPO)
- Ends the five-month waiting period for disability insurance benefits
- Provides credits to caregivers for time spent out of Workforce
- Extends benefits for eligible students up to age 22
- Increases access to benefits for children who live with grandparents or other family members
As the United States continues to weigh how to save the Social Security program, recipients who need cash now can consider a personal loan when interest rates are at all time lows. Visit Credible to speak to a personal loan expert and get all your questions answered.
Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.