Despite the turmoil of hitting this week’s debt limit and the potential impact it may have had on Social Security payments, news of the short-term spending bill is still just around the corner. ‘good news for the beneficiaries. Payments will continue as usual.
The conditions of the amount of payments for the elderly mainly depends on retirement age. The maximum that a person filing for Social Security retirement benefits in 2021 can receive per month is:
- $ 3,895 for a person who deposits at age 70,
- $ 3,148 for a person who deposits at full retirement age (currently 66 and 2 months),
- $ 2,324 for someone who deposits at age 62.
How can this be accomplished?
For retirees, the main factors taken into consideration are the retirement age and the 35 years during which the worker has earned the most, as an annual average.
In 2020, approximately 74.2 percent of social security benefit recipients were retirees, the average benefit amount being $ 1,544. The maximum amount of benefits depends on the year of retirement. Those who choose to retire before age 65 are penalized by lower benefits.
Weird how the costs of things like infrastructure bills and social security are reported in huge increments over decades, while military spending is reported in small annual numbers.
– Ken Klippenstein (@kenklippenstein) September 30, 2021
How is this going for 2022?
For 2022, the cost of living adjustment (COLA) is should be around 6 percent. This means that the amount received will increase by 6 percent, up to a maximum of $ 4,128 per month. While this growth appears significant, due to the high inflation rate in the United States, it will not be as large, but still represents an increase in real terms.
The COLA is usually not that large, but the high inflation for 2021 means the payments have to match or the elderly will fall into poverty. One of the main reasons for the high inflation is the increase in gas prices. The United States pushed the Gulf States to increase their oil production in an attempt to stop the cost of gas. This development was also felt strongly in Europe, causing soaring electricity costs in Spain and the United Kingdom.
To counter high inflation, the Federal Reserve could raise interest rates. However, he has been timid to increase them, as covid-19 fears have kept the central bank nervous for economic growth in the United States. Announcing the value of The COLA increase will be in mid-October.