topic Re: Social Security press release in Among Friends

Social Security press release

feline groovy — Wed, 13 Oct 2021 13:44:25 GMT

also applies to SSDI and SSI

Social Security Benefits Increase in 2022

blog.ssa.gov October 13, 2021

Approximately 70 million Americans will see a 5.9% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2022. Federal benefit rates increase when the cost-of-living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W).

The CPI-W rises when inflation increases, leading to a higher cost-of-living. This change means prices for goods and services, on average, are a little more expensive, so the cost-of-living adjustment (COLA) helps to offset these costs.

We will mail COLA notices throughout the month of December to retirement, survivors, and disability beneficiaries, SSI recipients, and representative payees. But, if you want to know your new benefit amount sooner, you can securely obtain your Social Security COLA notice online using the Message Center in your my Social Security account. You can access this information in early December prior to the mailed notice.

If you prefer to access your COLA notice online and not receive the mailed notice, you can log in to your personal my Social Security account to opt out of a mailed COLA notice and any other notices that are available online by updating your Preferences in the Message Center. Did you know you can receive a text or email alert when there is a new message waiting for you? That way, you always know when we have something important for you – like your COLA notice. If you don’t have an account yet, you must create one by November 17, 2021, to receive the 2022 COLA notice online.

January 2022 marks other changes that will happen based on the increase in the national average wage index. For example, the maximum amount of earnings subject to Social Security payroll tax in 2022 will be higher. The retirement earnings test exempt amount will also change in 2022.

Be among the first to know! Sign up for or log in to your personal my Social Security account today. Choose email or text under “Message Center Preferences” to receive courtesy notifications.

You can find more information about the 2022 COLA here.

Re: Social Security press release

godi — Wed, 13 Oct 2021 13:54:39 GMT

🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉🎉

Re: Social Security press release

nyc1 — Wed, 13 Oct 2021 13:57:13 GMT

@feline groovy however, we read that for those who are also on Medicare, they will have to pay higher rates which will just about wipe out the increase.

Re: Social Security press release

millieshops — Wed, 13 Oct 2021 14:06:50 GMT

Some years the number goes up a bit, some years a bit more, but the SS law has not changed for years, so the number we see changes every year but what it pays for really doesn't. Still, I am grateful for every dollar, grateful I have lived long enough to recoup what I actually paid in plus more. Most of all right now, I am grateful I live most days without pain and with hope to add another decade of SS benefits to my bottom line.

Re: Social Security press release

CelticCrafter — Wed, 13 Oct 2021 14:41:09 GMT

@nyc1 wrote:
@feline groovy however, we read that for those who are also on Medicare, they will have to pay higher rates which will just about wipe out the increase.

Just Part B - not your supplement, not your drug plan, not an advantage plan - is supposed to up about $10. a month.

Re: Social Security press release

SeaMaiden — Wed, 13 Oct 2021 14:47:31 GMT

@nyc1 wrote:
@feline groovy however, we read that for those who are also on Medicare, they will have to pay higher rates which will just about wipe out the increase.

Re: Social Security press release

Magicrat — Wed, 13 Oct 2021 14:47:38 GMT

You never get back what you paid in. You couldn't possibly live long enough for that to happen. That's what they bank on.

Re: Social Security press release

gizmogal — Wed, 13 Oct 2021 15:02:24 GMT

@nyc1 wrote:
@feline groovy however, we read that for those who are also on Medicare, they will have to pay higher rates which will just about wipe out the increase.

By federal law, Medicare premiums cannot go up in excess of the COLA raise in SS. Currently they are at $148/month. It is very unlikely they will go up nearly so much that it "nearly wipes out" a 6% rise in your SS benefits.

In former years, the SS COLA was very little, so the raise in Medicare premium was proportionally a worse bite out of the COLA. Since it's not allowed to exceed the COLA dollar amount (to effectively wipe it out), it still seemed to cut that back quite a lot nonetheless.

I calculated my COLA raise for 2022 just now, based on the 5.9% announcement provided by the OP. (thanks!). The raise, for me on my current SS, will be over $140/month! At $148/month for my Medicare premium it would have to nearly double to have a great effect on my raise in benefits! That is not at all likely. Medicare premiums usually go up about $10.(That would be about a 7% raise in the current Medicare rate) It won't wipe out anyone's new income benefit. It would only make a $10 difference!

Let's not say the sky is falling.The biggest SS raise in many years is going to mean notably more money coming in every month in 2022. Even with a slight offset because of a modest Medicare premium increase this is GOOD NEWS. Embrace it!!

Think positive.

Re: Social Security press release

geezerette — Wed, 13 Oct 2021 15:02:08 GMT

That's great.

But I doubt it will compensate for the rise in everything else we have to pay for to live.

Re: Social Security press release

feline groovy — Wed, 13 Oct 2021 15:04:17 GMT

@gizmogal wrote:
@nyc1 wrote:
@feline groovy however, we read that for those who are also on Medicare, they will have to pay higher rates which will just about wipe out the increase.
By federal law, Medicare premiums cannot go up in excess of the COLA raise in SS. Currently they are at 148/month. It is very unlikely they will go up nearly so much that it "nearly wipes out" a 6% rise of your SS benefits.

In former years, the SS COLA was very little, so the raise in Medicare premium was proportionally a better bite out of the COLA. Since it's not allowed to exceed the COLA dollar amount (to effectively wipe it out), it seemed to cut that back quite a lot nonetheless.

I calculated my COLA raise for 2022 just now, based on the 5.9% announcement provided by the OP. (thanks!). The raise, for me on my current SS, is over $140/month! At $148/month for my Medicare premium it would have to nearly double to have a great effect on my rasie in benefits! That is not at all likely. Medicare premiums usually go up about $10.(That would be about a 7% raise in the Medicare rate) It won't wipe out anyone's new income benefit. It would only make a $10 difference!

Let's not say the sky is falling.The biggest SS raise in many years is going to mean notably more money coming in every month in 2022. Even with a slight offset because of a modest Medicare premium increase this is GOOD NEWS. Embrace it!!

Think positive.

ITA 8-)

Re: Social Security press release

Sooner — Wed, 13 Oct 2021 15:09:38 GMT

@nyc1 wrote:
@feline groovy however, we read that for those who are also on Medicare, they will have to pay higher rates which will just about wipe out the increase.

That is the way it has always worked. Working folks never will get a break. We'd do well to keep up. Which we won't.

Re: Social Security press release

Jaspertimes — Wed, 13 Oct 2021 15:21:05 GMT

Well Medicare will be 158 this year and my supplement and drug plan went up exponentially. Not counting food, electricity, natural gas and gasoline rate explosions.

Re: Social Security press release

millieshops — Wed, 13 Oct 2021 15:37:12 GMT

@Magicrat If I add up what I personally paid into SS, I got everything back already plus some more.

Those who believe they never get it back may be making assumptions I don't make. For example, if my employer would have paid me the amount they had to pay into SS, that would change my figures. But I never saw anything approaching that during all the years I worked.

And if I hadn't had to pay SS, would I have saved that amount of money all the years I worked? That one I know for sure. I would not have - and even if I had saved my share, would I have invested that money better than the SSA did? No way to know that, but I do know that when we read what the stock market returns in a year's time, the average retail investor earns only a percentage of that amount.

I would love to see the SS law change to the advantage of retirees, but that's a congressional hot potato. Not holding my breath!

Re: Social Security press release

CelticCrafter — Wed, 13 Oct 2021 15:37:13 GMT

@Magicrat wrote:
You never get back what you paid in. You couldn't possibly live long enough for that to happen. That's what they bank on.

Not true, I've gotten back more than what has been paid in.

I guess it all depends on when you started receiving benefits.

Re: Social Security press release

meallen616 — Wed, 13 Oct 2021 15:53:53 GMT

Happy for the increase,

Re: Social Security press release

x Hedge — Wed, 13 Oct 2021 15:54:11 GMT

@CelticCrafter wrote:
@Magicrat wrote:
You never get back what you paid in. You couldn't possibly live long enough for that to happen. That's what they bank on.
Not true, I've gotten back more than what has been paid in.
I guess it all depends on when you started receiving benefits.

... and the amount.

The 5.9% increase some are anticipating will be more than double the dollar increase I see.

Re: Social Security press release

gertrudecloset — Wed, 13 Oct 2021 15:55:34 GMT

Social Security and Medicare Part B premiums

Most Social Security recipients will see their COLA reduced by an increase in the cost of Medicare. Medicare Part B premiums, which cover physician visits and outpatient medical services, are typically deducted directly from Social Security benefit payments. The 2022 monthly premium for Medicare Part B recipients has yet to be announced; the standard premium in 2021 is $148.50 per month. An increase of about $10 is projected for 2022.