STATEN ISLAND, N.Y. – All Social Security recipients will be eligible for a monthly increase beginning next year. This includes those who receive Social Security Disability Insurance (SSDI), as well as people who receive standard Social Security benefits.
Currently, Social Security recipients receive an average of $1,542.22 per month, however, next year’s cost-of-living increase could add an average of $175.10 monthly.
The specific amount of the cost-of-living (COLA) increase for 2023 won’t be released until Fall 2022, however, the nonpartisan Senior Citizens League said it could be as much as a 10.5% increase.
There has not been a double-digit COLA increase since 1982 when there was an 11.2% increase.
The potentially significant increase comes at a time when inflation rates in nearly all consumer markets are soaring, making it especially hard on Americans on a fixed income, like those who receive Social Security and Social Security Disability Insurance benefits.
BILL INTRODUCED THAT WOULD RAISE MONTHLY PAYMENTS BY $200
Introduced in June by Rep. Peter DeFazio (D-Oregon) and Sen. Bernie Sanders (I-Vermont), the Social Security Expansion Act would give beneficiaries an additional 12% each month -- $200 per month -- totaling $2,400 annually.
Anyone who is a current Social Security recipient eligible in 2023 – at least 62 years old – would receive the bonus check, including Americans who receive Social Security Disability benefits.
“For an individual who is eligible for [standard] or disability insurance benefits (or who dies before becoming eligible for such a benefit) after 2022, the amount determined for the individual …” the legislation states.
Said Sanders: “I am proud that the Social Security Administration has estimated that our legislation to expand Social Security benefits by $2,400 a year will fully fund Social Security for the next 75 years by applying the payroll tax on all income – including capital gains – above $250,000 a year.”
The bill would boost benefits for the lowest income earners in the U.S. under the Special Minimum Benefit program. Current recipients receive approximately $900 per month, according to the Social Security Administration. The proposed legislation would adjust the rate to 125% of the federal poverty line, increasing the monthly check to an estimated $1,400 per month.
It would also increase payroll taxes for some earners; currently earnings above $147,000 are not subjected to Social Security taxes, but the bill would change it so all earnings at or above $250,000 are taxed. Lawmakers said more than 93% of households would not see a change in how their income is taxed and would not be raised.
FOLLOW KRISTIN F. DALTON ON TWITTER.