Biggest Social Security Monthly Payment Increase Up to $1,800 Expected To Release This Week; Here Are the Lucky Recipients!

In the next two days, a select group of Social Security claimants will start receiving their monthly checks, which are expected to be worth an average of $1,546 each.

The Social Security Administration reports that on October 12, recipients of Social Security who were born between January 1 and October 10 will get their regular check. People whose birthdays fall after October 10 will get their checks later in the month.

Social Security For Low-Income Earners

The Social Security payment formula is based on lifetime earnings and does not have a cap based on resources or income. The amount of the recipient's regular Social Security benefit check varies from $377.35 to $1,672, depending on their situation.

Depending on their income level, retired workers may get payments as high as $1,672 a month, while non-disabled widows or widowers may receive up to $1,564 in survivor benefits, according to the SSA.

The standard Social Security benefit is different from other SSA benefits like disability insurance and supplemental security income, which will be paid out for the next period on November 1. Analysts claim that Social Security is bankrupt, as per Washington Examiner.

Social Security Benefit

Seniors may receive the largest Social Security benefits rise in 40 years. This week, an 8.7% cost-of-living increase is anticipated to be published to help recipients keep up with inflation. The boost would benefit 70 million elderly people, disabled persons, and widowers. Even while many people who are battling with inflation could benefit from an increase, some people might find it more challenging.

The Senior Citizens League estimates that starting in January 2023, the average monthly check of $1,656 would grow by $144 to $1,800 if the COLA increase is 8.7%. Sandra Clapp said, "Sticker shock since I just went grocery shopping this morning. What was $1.69 last week is $1.99 this week, and I'm saying ooooh."

Even though rising Medicare premiums sometimes offset the cost of living adjustments, this year's regular Part B premium will decrease from approximately $170 to $165. However, not all beneficiaries may benefit from the Social Security increase.

According to a survey by the Senior Citizens League, 59% of respondents claim the 5.9% COLA hike for 2022 has already increased their federal income tax liability. While recipients do not pay federal income tax on payments under $25,000 per year, they do pay up to 85% in tax on benefits over $34,000 and up to 50% on benefits between $25,000 and $34,000.

Additionally, this hike might make some beneficiaries less eligible for aid, such as SNAP food benefits. Texas's SNAP income cap is $1,775, which is barely below the estimated average Social Security benefit of $1,800.

Many Social Security beneficiaries claim that payouts are still too low. According to the Senior Citizens League, for recipients to have the same spending power as they did in 2000, the average monthly payment would need to grow by $417, according to Fox 26 Houston.

Social Security is typically a crucial source of income for retirees to get by. In a survey conducted earlier this year, nearly 90% of retirees told Gallup that their Social Security check was either a major or small source of income. In addition, research from the Center on Budget and Policy Priorities (CBPP) concluded that each year, Social Security benefits help 16.1 million people 65 and older escape poverty.

With Social Security, 9% of elderly Americans live in poverty. Without it, the CBPP estimates that it would be closer to 38%. Everyone is looking forward to the cost-of-living adjustment (COLA) for 2023 because of the program's indisputable significance to seniors' financial security, The Motley Fool via MSN reported.