COLA Social Security payment schedule 2022 — Three $1,657 checks go out this month before 8.7% boost – see exact date
THE first of three December Social Security checks will drop in one week.
The Social Security Administration issues three payments on Wednesdays and when retirees receive checks depends on their birthdays.
Anyone whose birthday falls between the 1st and the 10th can expect to get their money on December 14.
Those whose birthdays fall between the 11th and the 20th of the month can expect to receive their benefits on December 21.
For anyone with a birthday that falls between the 21st and the 31st of the month can expect to get their payment on December 28.
The average monthly COLA check for retired workers is $1,657, but it will rise next year by $144.10.
Read our COLA blog for more news and updates...
IRS Protect Your Clients; Protect Yourself, part two
The IRS also recommends that any online businesses, commerce, and banking only be done while using a secure browser connection.
This means never at a coffee shop, restaurant, or other business offering free wifi.
Additionally, be cautious of email attachments and web links. Don’t open a link or attachment that arrives unexpectedly.
Always call the sender to confirm receipt and validity of any unexpected links or attachments before opening.
Head to the IRS website for all other recommendations.
IRS Protect Your Clients; Protect Yourself
The IRS recently announced that the Security Summit partners ended their last summer education campaign.
They’ve outlined steps for tax professionals to help clients identify theft from related tax-fraud scams.
The “Protect Your Clients; Protect Yourself” campaign urges tax professionals to secure their computer systems and protect client data following the pandemic and its aftermath.
With the increase of work-from-home, the IRS and Security Summit partners urge the use of virtual private networks, or VPNs, to securely conduct business.
Senator Ron Johnson suggests discretionary spending, continued
Mr. Johnson used Defense and Veteran Affairs as examples of programs where discretionary spending is used.
“What we ought to be doing is we ought to turn everything into discretionary spending so it’s all evaluated so that we can fix problems or fix programs that are broken, that are going to be going bankrupt,” he said.
Senate Majority Leader Charles E. Schumer said Democrats would push back against any attempts to “pull the rug out from under our seniors.”
Senator Ron Johnson suggests remodeling Social Security
Mr. Johnson suggested ending Social Security and Medicare as federal entitlement programs and instead having congress approve them yearly.
The two programs would rather be regarded as discretionary spending.In an interview, he said, “Our problem in this country is that more than 70 percent of our federal budget and spending is all mandatory spending. It’s on automatic pilot.”
Because of this, he said these programs don’t get the proper oversight they need which leads to programs “going bankrupt.”
SSDI eligibility requirements
To qualify for Social Security disability insurance benefits, you must:
- Have worked in jobs covered by Social Security
- Have a medical condition that meets Social Security’s strict definition of disability
Can you claim both Social Security and SSDI?
An eligible individual cannot collect Social Security retirement and Social Security disability insurance (SSDI) at the same time.
However, an individual is allowed to receive SSDI and Supplemental Security Income (SSI) benefits concurrently.
If you believe you qualify for both SSDI and SSI, you will want to compare the monthly benefits to see which one will give you the most money.
New job? Wait to claim
Some of how much you earn in Social Security checks is weighed by your earnings history.
If you haven’t earned a lot in your working history, and you just got a better-paying job, it would make sense to continue to build up your benefits.
Once your earnings exceed the wage cap, you don’t get taxed on it for Social Security. Also, many employers have been boosting wages in an effort to lure workers in the past year or so.
Waiting to claim Social Security might be a good opportunity to improve your earnings history.
How to access Social Security forms
Any forms that you may need to access, such as a Social Security card application, a child disability report, or a voluntary withholding request, are available on SSA.gov.
All of the forms are completely free.
You can call at 1-800-772-1213 or contact your local Social Security office if you can’t find the form you need or if you need assistance completing one.
You should send or deliver a paper form to your local Social Security office or the office that requested it if you downloaded, printed, and completed one.
The relationship between PIA and COLA
When a COLA happens, the PIA is increased, and the processes to determine the new benefit amount based on the new, higher PIA are repeated, according to the Social Security Administration.
The rise in the new monthly benefit amount over the prior amount may fluctuate somewhat from the COLA due to rounding, potential offsets, and ultimate truncation in these processes.
What is Primary Insurance Amount?
In the United States, the Primary Insurance Amount is part of the Social Security Administration.
The beneficiary must have worked for at least 10 years and paid the Federal Insurance Contributions Act tax up to a maximum taxable earnings level to be eligible for Social Security payments, according to the SSA.
What will happen in 2034?
An annual report from the SSA shared pessimistic news.
It’s estimated in 2034, the Social Security Trust Fund will not have enough money to pay recipients.
The SSA said it doesn’t expect to halt payments but rather monthly benefits will be reduced unless changes are made.
Who qualifies for Social Security?
To qualify, seniors must have worked for a certain number of years and paid into the Social Security system for a certain amount of time.
The amount received depends upon when you were born, your earnings history, and when you begin to claim benefits.
Some households are also subject to paying taxes on their Social Security benefits, usually if significant additional earnings, including wages, self-employed earnings, dividends, or other taxable income.
It’s important to note that Supplemental Security Income (SSI) differs from monthly Social Security benefits. SSI payments are not taxable.
Has the SS retirement age increased?
While you can begin collecting Social Security benefits as early as age 62, your monthly payments will be decreased.
For people born in 1937 or before, the full retirement age used to be 65. The complete retirement age for those born between 1943 and 1954 is 66.
The full retirement age increases by two months each year, rising to 66 and 10 months for those born in 1959 from 66 and eight months for those born in 1958.
Those born in 1960 who turn 62 in 2022 will reach full retirement age at the age of 67.
For those born in 1960 or after, the full retirement age will remain 67.
Social Security was only a retirement program
What we now know as Social Security only provided retirement benefits to the principal worker under the 1935 statute, according to the SSA.
Survivor benefits and benefits for the retiree’s spouse and children were added to the statute in 1939.
Disability benefits were added in 1956.
The first national unemployment compensation program, state financing for different health and social programs, and the Aid to Dependent Children program were all included in the original 1935 statute.
How does Social Security work?
The majority of Americans pay 6.2 percent of their salaries to the Social Security system, with employers matching that proportion, according to US News.
Self-employed people contribute 12.4 percent of their earnings to Social Security.
Workers who have contributed enough to the system can begin collecting retirement benefits at the age of 62 or older.
If you become handicapped, you may be eligible for benefits, and if you die, your family members may be entitled to survivor’s payments.
How much more are married couples getting?
The average Social Security benefit has increased by about $154 per month for couples due to COLA in 2022, according to the Social Security Administration (SSA).
The increase has brought the average monthly payment for couples from $2,599 to $2,753.
Boosting your SS benefits, continued
For each month from your full retirement age until age 70 that you postpone filing for benefits, the Social Security Administration increases your eventual benefit by about two-thirds of one percent – a total of eight percent for each year you wait.
That means retirees who reach full retirement age at 67 but delay claiming until 70 will get an extra 24 percent of their monthly benefit.
If the average benefit is $1,500, your check could now be reduced to $1,050 if you retire at 62.
If you wait until 70, that check will be around $1,888, assuming average benefit and eight percent year-over-year accrual beginning at full retirement age.
How to boost your SS benefits
The best way to boost your SS benefits is by holding off on filing until you reach the full retirement age of 70.
Depending on your benefit amount and at which age you decide to begin distributions, you could almost double the benefits you receive each month.
Delaying your retirement credits is a financial reward when collecting SS benefits.
State Minimum Wage and changes for 2023, continued
New Jersey is raising the minimum wage to $14 at the start of 2023 from the previous total of $13.
New Mexico is raising its minimum wage 50 cents from $11.50 to $12.00 for workers starting January 1, 2023.
Rhode Island is increasing its minimum wage by 75 cents from $12.25 and will pay workers $13 starting in 2023.
More State Minimum Wage and changes for 2023
Massachusetts currently offers a $14.25 minimum wage to workers but plans to raise that amount to $15 at the start of 2023.
Michigan plans to increase the minimum wage from $9.87 to $10.10 on January 1, 2023.
Missouri will raise the total of their minimum wage to $12 from the $11.15 total in 2022.
State Minimum Wage and changes for 2023
Across the US, states have different minimum wages set for 2022. Many states have already implemented changes that will take effect in 2023.
Florida’s minimum wage is currently set at $11 but is set to rise to $12 starting September 30, 2023.
Illinois is paying worker’s minimum of $12 but that total is set to rise to $13 effective January 1, 2023.
States with no minimum wage required
The following states have no minimum wage required in the US and default to the federal minimum wage which is $7.25 an hour.
States with the highest minimum wage
As the nation continues to deal with inflation, some states have increased the minimum wage to combat rising prices.
Washington, DC has the highest minimum wage coming in at $16.10 an hour.
Other states with high minimum wage:
- Washington: $14.49
- Massachusetts: $14.25
- Connecticut: $14.00
- California: $14.00
- Oregon: $13.50
Why you should retire at 70, continued
If you delay benefits for an additional 12 months, you’ll receive 108 percent of the monthly benefit and if you wait until 70, you’ll receive 132 percent.
If you fully take advantage of everything from your work and earnings history to delaying your claim — it’s possible you can earn the maximum Social Security benefit.
In 2022, the maximum benefit was boosted to $4,194 a month.