New September Social Security Payment arrives in less than a week.
Price inflation around the world is undeniable. The United States has seen a massive increase in prices across the board so Social Security recipients may have some trouble with this. It’s not easy to pay all the bills when a person is collecting only the Social Security retirement benefit.
Last year we could see that the COLA had a significant increase. In total, that increase was almost 6%. But for next year, all indications are that the rise will break a record, which will cause benefits to increase quite a bit.
This COLA will increase benefits, but it could all fall short if inflation continues to rise. Thus, anyone collecting Social Security will need some extra income. For that reason, there is the possibility of an additional $200 per month in retirement benefits.
Social Security COLA Increase
The increase in the Social Insurance COLA will depend on the rise in CPI-W. This calculates the overall increase in commodity prices in August, August, and September. After knowing the exact growth, the government decides how much to increase the benefits by 2023. With the constant price increase, this increase may be record-breaking and reach almost 9%. But the story doesn’t end there.
Social Security pension could increase.
It is quite possible that inflation will not stop in 2023 as well. So such a slight increase in COLA pensions would not fix anything. So politicians are looking for other opportunities to increase. Such an increase could cause Social Security to increase retirement benefits by up to $200 per month while increasing trust funds.
If you think your Social Security pension is a bit low, you may enjoy this news. In any case, it is essential to remember that all this increase is not for pensioners to get rich but for them to be able to cope with inflation.
Anyway, all this is not certain, so we can only wait and see if we will finally get this increase next year. Considering the COLA raise and the possible $200 gain, Social Security checks could increase more than we expected.
$200 increase in pensions
This increase would come on the heels of a new bill proposed by Warren and Sanders, two senators. This Bill would increase trust funds by raising taxes on top earners. According to studies, such a tax increase would only affect a small part of the United States, but it would greatly benefit the whole country.
Social Security Retirement COLA Payment – Canva
Thanks to this Bill, Social Security recipients could see a $200 increase in benefits. In addition, the trust funds would increase, so they would not have an expiration date of 2035. With this new Bill, the advantages would be many and the disadvantages very few, although it is still pending.
But this Bill does not mean a tax increase for all United States citizens. The growth is only for people who have a very high income. These people are few so Social Security will see many benefits from very few people. In short, pensions will be able to see a significant increase without the government losing funds.
It should also be noted that this is nothing more than a bill. This means that it is not yet certain that Social Security will be able to benefit from all these new advantages. If passed, pensions will be in for a treat.