Social Security retirement benefits could see big hike in 2022: What to know

[BumRushDaShow]

Social Security retirement benefits could see big hike in 2022: What to know

Susan Tompor Detroit Free Press
Published 6:00 a.m. ET Sep. 2, 2021 | Updated 8:21 a.m. ET Sep. 2, 2021


Predictions that Social Security retirement benefits could be heading for a 6.2% hike in 2022, thanks to a bump in inflation, could lead some baby boomers to figure they've got one less reason to wait to claim benefits. After all, those claiming retirement benefits are going to get more money next year. Why not rush to claim at age 62 or 63 now if you're going to get extra dough? Well, experts warn that you might want to rethink that one.

Social Security retirement benefits are turning into one hot topic as we're hearing more buzz about a future hefty cost of living adjustment next year. The cost of living adjustment, known as COLA, was a mere 1.3% in 2021 — raising the average benefit by about $21 for monthly payments and making it one of the lowest increases on record since 1975 when Social Security started automatic annual cost-of-living allowances.

What's ahead in 2022?

Next year, we're talking real money. Some retirees could be looking at an extra $100 a month, based on an average Social Security retirement monthly payment of $1,655.71 in July. We won't know the official cost of living adjustment for 2022 until the Social Security Administration makes that announcement in October. The percentage is determined after the U.S. Bureau of Labor Statistics releases the September Consumer Price Index.

Any increase due to COLA will show up in checks and direct deposit benefits paid in January. Right now, it looks like the cost-of-living adjustment is going to be around 6.2%, according to the Senior Citizens League, a nonpartisan group dedicated to protecting and strengthening Social Security benefits.

Read more: https://www.freep.com/story/money/personal-finance/susan-tompor/2021/09/02/social-security-cola-increase-2022-when-to-claim-benefits/5655132001/

This is just a guesstimate based on the last quarter and surveys dealing with inflation (and everyone has seen the headlines about inflation!!111!!!!11!)

The federal government's CSRS uses the same COLA formula as SS, so crossing fingers on a decent hike considering the 1.3% last year. Medicare Part B is forecast to increase by $10.

[msongs]

1. if u file early u get a much reduced monthly payment vs waiting nt

[Wounded Bear]

16. Yes, but I had to in my situation...

Luckily I still make enough to get by on due to some salad years in my earnings record.

Hopefully, my rent doesn't go up as much as my payment, which was the norm pre-covid. At least they haven't hiked my rent in 2 years, but I suspect I'm in for a bump next year.

[SheltieLover]

2. K&R!

[Sherman A1]

3. My advice is

Understanding that everyone’s economic are different, folks should go as soon as they can. Tomorrow isn’t guaranteed.

[BumRushDaShow]

10. That's been my thinking

As a federal annuitant under CSRS-offset, I have to file at 62 because my current annuity will revert to being a supplement to SS (with the SS the "primary" ). My total check amount wouldn't change from what it would have been as all-annuity, but it would just be different checks (and different times of the month for receipt- the annuity is always on the 1st or closest to that, but the SS varies depending on birthdate).

[nitpicker]

39. +1

[ProfessorGAC]

11. That's What I Did

I was eligible for the max benefit.
I took it 4 years, 4 months early and took a hit of a bit under 30%.
In order to break even, I had to live 14 years 2 months beyond full retirement age. That's 81 years old.
My dad died at 69, my mom at 75.
Given a pension, plus a couple million dollar IRA it made no sense to wait.
For others not in a position to retire early, it makes more sense to wait.
Situations are highly varied.

[MiniMe]

4. Of course, Medicare will go up about the same amount

That's what usually happens

[marie999]

41. That is what is nice about VA disability. We get the whole increase.

not accounting for the increase in Medicare that would come to about $600 a month increase for us. Of course with having 5 children and their spouses, 9 grandchildren and their spouses, and 13 great-grandchildren I am sure it will all be spent.

[ampm]

5. Nevada checking in

Wow! we get an increase just to have Medicare take it away why?

[Hoyt]

6. More money, but not more buying power if today's higher prices stick.

[Tomconroy]

7. About 30 percent or so grab it at 62. A third at 66. The rest

Are scattered over the various ages until 70.
I grabbed it early. No regrets. The money is what it is. Thank you FDR!

[iwannaknow]

8. With the inflated price of groceries and increased Medicare Part B premium

it might not go that far.

[3Hotdogs]

9. Im lucky. My net SS is 1,599.00 per month.

All health care insurance costs (Medicare A & B) are paid by the state pension fund. So whatever the increase, I will get it all, minus federal tax (Thanks Ronnie).

[redstatebluegirl]

20. Yes King Ronnie did that.

[luckone]

12. Well they are going to need the raise ..everything is so expensive lately

[a kennedy]

13. I thought the Social Security fund was running out of money???

The Social Security trust fund most Americans rely on for their retirement will run out of money in 12 years, one year sooner than expected, according to an annual government report.

The circumstances, which were exacerbated by the Covid pandemic, threaten to shrink retirement payments and increase health-care costs for Americans in old age sooner than expected.

The financial outlook for Social Security and Medicare, two of the nation’s preeminent safety net programs, has deteriorated over the past year.

https://www.cnbc.com/2021/08/31/social-security-trust-funds-set-to-be-depleted-sooner-than-expected.html

[iwannaknow]

14. News Flash: It ain't runnin' out of money.

A simple policy change could end that possibility, i.e., raise the income cap on contributions.

[Rebl2]

24. They have

talked about that for twenty-five years and they haven’t done it yet and I just don’t see it happening. I would like it if they did this, but neither Democrats or Republicans has bothered to try and do it.

[Igel]

32. In other words,

It's running out of money but they could do something to stop it.

Why bother? Just borrow the money and fund it through deficit spending.

[yaesu]

15. good news since I start receiving checks next month. nt

[Joinfortmill]

17. Thank you

[Fiendish Thingy]

18. Retired at 62 two years ago, haven't regretted a day(especially due to COVID, but even without) nt

[madamesilverspurs]

21. My landlords will be thrilled.

It's pure coincidence, mind you, that my annual rent increases closely approximate my COLAs. My landlords own a number of rental complexes, so their circumstances are clearly so much more desperate than mine and therefore warrant the grab, er, rent increase. A couple landlords ago I remarked on the 'coincidence' as I tendered my rent check, and got told that I should be grateful to have been "given the money to cover the raise in rent." Been on SS since '92, and have yet to experience being able to bank any COLA.


.

[Dawson Leery]

22. And there is the anger from the money class.

For the first time since Jimmy Carter, the commoners are getting benefits.

[left-of-center2012]

23. My rent will go up by an equal amount

Happens every time.

[Scruffy1]

25. Whoever wrote that crap should be sent back to school.

The way the inflation rate is figured is pretty much bullshit, and especially for seniors who have higher medical costs. An inflation allowance is not an increase in the first place Even if it was a perfect measurement it's always a year behind so you still get less in real purchasing power. No way, no how should this fit into any bodies retirement plan.

[BumRushDaShow]

27. Well most of the articles on this

were similar and pretty dire but I think we know that it'll never make up for the real cost. I suppose as long as they don't go with "chained CPI", then we can count our blessings. What things are used to calculate this needs a major revamp.

[Haggard Celine]

26. What about people on disability?

Our pay comes from Social Security. I hope SSDI goes up as much as the benefit for retirees.

[BumRushDaShow]

28. You should get the same

Social Security Recipients May See A 6.2% Increase In 2022

Kemberley Washington, John Schmidt
Forbes Advisor Staff, Editor

Updated: Aug 23, 2021, 10:41pm

(snip)

If you rely on Social Security payments, you’re in for a much-needed raise. Each year, Social Security and Supplemental Security Income (SSI) benefit recipients, like those who receive retirement or disability payments, get an automatic annual cost-of-living adjustment (COLA) to preserve their purchasing power and keep up with rising prices, better known as inflation.

https://www.forbes.com/advisor/personal-finance/social-security-cola/

[Haggard Celine]

33. Thank you!

Somehow I missed that part.

[BumRushDaShow]

35. You are welcome!

One of my BIL's had been on SSDI and I think he should have been eligible for regular SS i(f he decided to take it early).

[pansypoo53219]

29. REMOVE THE CAP! and lower FICA. greenspan fucked this up.

[greenjar_01]

30. Enjoy, Boomers...shit's gonna be out of money by 2035

Guess GenX, etc. gotta go it alone.

[Ferrets are Cool]

31. It still wont be enough to keep up with the price of buying food

I have to close my eyes every time I go into the store and they ring up my bill.

[kskiska]

34. If you're divorced and were married at least 10 years,

you’re eligible for some of your ex’s Social Security. Mine increased quite a bit after I found this out.

Divorced women married at least 10 years are eligible for Social Security on the ex- husband’s record if they are unmarried at the time they become eligible for Social Security.

Any benefits paid to a divorced spouse DO NOT reduce payments made to the ex or any payments due the ex’s current spouse if he remarried.

When your husband (or ex dies), you’re probably due a widow’s benefit.

Widows are due between 71 percent (at age 60) and 100 percent (at full retirement age) of what the husband was getting before he died.

https://www.ssa.gov/sf/FactSheets/WomenandSSrev1.pdf

[Karma13612]

36. Is that in addition to what the spouse has already

Been getting?

Widows are due between 71 percent (at age 60) and 100 percent (at full retirement age) of what the husband was getting before he died.

My husband is British. He did not work much here in the US before he turned 65. His SS benefit is basically reflective of my earnings for my working life. I started drawing SS when I hit 65 two years ago. I get $X.00 and he gets approx 1/2 that. He’ll likely die before me. My understanding is that I will not get anything extra, beyond a death benefit.
If I die first, he will suddenly start getting my higher rate (but not his in addition, just my amount). Seems like I’ll get screwed.
Our country is very generous to spouses. But I will get a very tiny pension from his UK gov pension when he passes. I think it’s like $100 a month.

[kskiska]

37. Check with the Social Security website

When my ex (who had remarried) died, someone informed me that I could receive the amount he had been getting, rather than my current benefit, so I filed for it and got it. When his widow later filed upon turning 65 (or whatever), my benefit decreased a few dollars (very little).

[Karma13612]

38. OK, I think that is what I suspected.

I won’t see a bump if/when he passes first. He will see a bump up to my level if I pass first.

Thanks for that info! Ah well, nothing wrong with a part-time job to keep me healthy both financially and ‘overall’.

[fescuerescue]

40. Good news is that they get an extra $100

Bad news is everything else went up $110.