Social security increase of $200 / month coming?

[mefordis]

It looks like congress may pass an inflation reduction bill which will include a $200 pay increase for social security recipients.

I know my mom will appreciate that!

 

[dreamer17555]

My mom as well. Fingers crossed.

 

[disykat]

My mom won't know the difference, but I will! It will help offset the recent fee increase for care points at her facility.

 

[TwoMisfits]

It looks like congress may pass an inflation reduction bill which will include a $200 pay increase for social security recipients.

I know my mom will appreciate that!

Do you have the text from the bill showing this is above and beyond the coming $175-$200/month increase due to the rapidly increasing inflation this year?

I mean, right now, that increase is baked in under existing law and the existing economic state. So, if there is a $200 increase in the bill, you should be getting an almost $400/month increase next year.

 

[jo-jo]

Is that on a sliding scale? I mean someone getting $500 a month vs $2000 a month both get $200? And that's a month?

 

[TwoMisfits]

Is that on a sliding scale? I mean someone getting $500 a month vs $2000 a month both get $200? And that's a month?

No, the checks would increase by 10.8% (if the current inflation thoughts check out for 3rd quarter), so whatever you have now, multiply the gross by 1.108. The previous posted increase is the average SS recepient amount increase.

 

[TwoMisfits]

PS - All I have found for an extra increase (above the coming inflation adjustment) is a SS bill introduced by Bernie Sanders to help only the lowest receiving SS recepients. It is unlikely to go anywhere in the 2022 session, so I would not plan on that. It is unrelated to the agreement with Manchin and Shumer - that has nothing announced for Social Security.

 

[NannyBeBe]

If this increase happens, you can be sure that the insurance will increase to match it.

 

[AvidDisReader]

No, the checks would increase by 10.8% (if the current inflation thoughts check out for 3rd quarter), so whatever you have now, multiply the gross by 1.108. The previous posted increase is the average SS recepient amount increase.

This is correct. My only comment is that the latest stats I read where that the increase will be 9.7%, but I am sure different "experts" have their own way of making predictions on what the final increase will be.

 

[mefordis]

I think they plan to pay for it by raising the FICA cap from $147k to $250. You would pay taxes up to 147k, then from 147k to 250k no FICA is taken out, then after 250k the FICA tax kicks in again.

The legislation hasn't been passed yet, in senate or house.

 

[barkley]

one of the issues that concerns me regarding this sander's plan is how it will impact low income social security recipients who rely on other income driven programs for their survival. unless those programs have their numbers tweaked upward a bit (and many have not in many years) a recipient could see their monthly ss check increase by $200 but as a result lose their eligibility to programs that help pay their medicare premium, utility assistance, housing assistance...

$200 per month more sounds great in theory but if it means you lose eligibility to even $500 per month on other programs then you are far worse off. unfortunately those that propose these bills don't look to the domino effect of the bill (i saw it time after time administering these programs). the annual cola for social security this year b/c of it's much higher anticipated amount could have a similar impact on recipients-it's a major topic of conversation in many retiree publications.

 

[TwoMisfits]

one of the issues that concerns me regarding this sander's plan is how it will impact low income social security recipients who rely on other income driven programs for their survival. unless those programs have their numbers tweaked upward a bit (and many have not in many years) a recipient could see their monthly ss check increase by $200 but as a result lose their eligibility to programs that help pay their medicare premium, utility assistance, housing assistance...

$200 per month more sounds great in theory but if it means you lose eligibility to even $500 per month on other programs then you are far worse off. unfortunately those that propose these bills don't look to the domino effect of the bill (i saw it time after time administering these programs). the annual cola for social security this year b/c of it's much higher anticipated amount could have a similar impact on recipients-it's a major topic of conversation in many retiree publications.

It's the feature, not the bug, of high inflation. The government can take away entitlements without ever taking away entitlements - aka, the coward's way to reduce them. The same happens for a LOT of tax credits - they are almost never indexed to inflation, so this year may really hurt folks come tax time...

 

[tvguy]

If this increase happens, you can be sure that the insurance will increase to match it.

If you mean Medicare, no. Medicare premiums were already scheduled to go DOWN $20 a month. They went up to cover the cost of that new Alzheimers drug that has now been dropped because it apparently doesn't work.

 

[barkley]

If you mean Medicare, no. Medicare premiums were already scheduled to go DOWN $20 a month. They went up to cover the cost of that new Alzheimers drug that has now been dropped because it apparently doesn't work.

i just read something yesterday that spoke to this (maybe in aarp's most recent mag?). talked to how they were 'hopeful' that the savings from not covering that particular drug 'might' be enough to offset any inflationary increases to the program for 2023. it's like we always says at cola time-'social security given and medicare taketh away'

 

[mefordis]

If this increase happens, you can be sure that the insurance will increase to match it.

They were also floating the possibility of capping medicare expenses to 2k / year.

 

[tvguy]

i just read something yesterday that spoke to this (maybe in aarp's most recent mag?). talked to how they were 'hopeful' that the savings from not covering that particular drug 'might' be enough to offset any inflationary increases to the program for 2023. it's like we always says at cola time-'social security given and medicare taketh away'

Well, could be. My wife just signed up for Medicare today and the Medicare website still says the current $171 a month for part B will drop to $151 January 1, 2023.