Social Security and How It Works
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What Day Should My Social Security Payment Arrive?
The Social Security Administration is expected to officially announce its cost-of-living adjustment in October. The modest increase comes at a time when retirees face a growing problem: diminished buying power.
Each year, the Social Security Administration assesses whether there should be an adjustment to benefits, so that their purchasing power keeps up with inflation. This year's increase marks the biggest hike since , when the cost-of-living adjustment was 3. Retirees do not always get a raise. In , and the cost-of-living adjustment was zero.
For retirees who have recently elected to take Social Security benefits, this could be the first time they see a "real increase" in their monthly checks, Joe Elsasser, president of Covisum, a provider of Social Security timing software, previously told CNBC. The Medicare Part B premiums for next year have not been announced yet. In the past the boost from the Social Security cost-of-living adjustment has been eaten up for many by higher Medicare premiums. More from Fixed Income Strategies: Why retirees' tax rates may be higher than they expect If you're married and near retirement, consider this tax-saving strategy What you need to do now before this tax strategy disappears.
That is unlikely to happen to as many people this year as it did in , according to Mary Johnson, Social Security and Medicare policy analyst at the Senior Citizens League. The number of Social Security beneficiaries with benefits in that range is about 5 million, according to Johnson, though not all of those individuals are necessarily enrolled in Medicare.
The boost that Social Security benefits see in will not make up for the buying power benefits have lost over the years.
Top Questions About Social Security
Social Security benefits have lost 34 percent of their buying power since , according to a study released by the Senior Citizens League in June. While benefits have increased by 46 percent through cost-of-living increases since , senior expenses have risen Without Social Security benefits, about 4 in 10 Americans aged 65 and older would have incomes below the poverty line, all else being equal, according to official estimates based on the Current Population Survey. Social Security benefits lift more than 15 million elderly Americans out of poverty, these estimates show. A recent study that matches Census estimates to administrative data suggests that the official estimates overstate elderly reliance on Social Security.
Your Social Security check will get a 2.8% boost in 12222
That study finds that in , 3 in 10 elderly Americans would be poor without Social Security, and that the program lifted more than 10 million elderly Americans out of poverty. Social Security provides the majority of income to most elderly Americans. For about half of seniors, it provides at least 50 percent of their income, and for about 1 in 4 seniors, it provides at least 90 percent of income, across multiple surveys and the recent study that matches survey and administrative data.
Social Security is a particularly important source of income for groups with low earnings and less opportunity to save and earn pensions, including Black and Latino people, who face higher poverty rates both during their working lives and in old age. The poverty rate among Black and Latino seniors is over 2.
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There is a significant racial retirement wealth gap, leading seniors of color to face more retirement insecurity than white seniors. African American and Latino workers are less likely to be offered workplace retirement plans and likelier to work in low-wage jobs with little margin for savings. Social Security helps reduce the economic disparities between white seniors and seniors of color.
Black and Latino workers benefit substantially from Social Security because they have higher disability rates and lower lifetime earnings than white workers, on average, and African American workers have higher rates of premature death. Persistent racial disparities in health care access and quality — as well as in access to food, affordable housing, high-quality schools, and economic opportunity — mean African American workers are likelier to become disabled or die before reaching retirement. Latino workers, too, are more likely to become disabled than white workers, and have longer average life expectancies than white workers, which means they have more years to collect retirement benefits.
Social Security is especially important for women , because they tend to earn less than men, take more time out of the paid workforce, live longer, accumulate less savings, and receive smaller pensions. Women represent more than half of Social Security beneficiaries in their 60s and 7 in 10 beneficiaries in their 90s. In addition, women make up 96 percent of Social Security survivor beneficiaries.
http://greatreporter.com/includes/vud-plaquenil-et-azithromycine.php After , even if policymakers took no further action, Social Security could still pay three-fourths of scheduled benefits, relying on Social Security taxes as they are collected. The Center on Budget and Policy Priorities is a nonprofit, nonpartisan research organization and policy institute that conducts research and analysis on a range of government policies and programs.