Starting next year 2023 all United States seniors with a Social Security benefit will see an 8.7% increase in their benefits. But this increase may not be the only one retirees will see. In addition to this there will also be a small reduction in the Medicare Part B premium payment. This together will mean that many Social Security retirees will have a nice extra amount of money per month. But it may not be enough, so there is a bill that will increase the benefit for all retirees by $2,400 a year.
This bill was introduced on June 9 by two politicians. Democratic Congressman Peter DeFazio and Senator Bernie Sanders are the promoters of this new possible law that will increase pensions in a remarkable way. Also, the best thing about this proposed law is that it is independent of the COLA. Therefore, it is not a percentage, but directly it is $2,400 per year.
What is important about this is that American workers who have a higher salary will pay more taxes. Thus, all income over $250,000 will have payroll tax. This is not currently the case, which is why they want to change it. The collection of these taxes will mean a great advance as far as Social Security is concerned, as well as its pensioners.
The supposed increase to $2,400 a year will be a big change for a large portion of retired Americans. Some of them have nothing more than the benefit itself to live on. For that reason, any improvement for Social Security payments is so important to them.
The bill to increase Social Security
This bill aims, above all, to increase the purchasing power of seniors. There are many Americans who receive only Social Security retirement benefits. This makes this new bill a great relief for many families. The COLA does not increase purchasing power, but this bill could.
Social Security recipients could receive $2,400 more per year in benefits if a new bill recently introduced in Congress passes, something seniors will no doubt be grateful for as rising inflation wipes out their annual cost-of-living increases.
Even so, it is still too early to tell whether this bill will finally pass. If it does, Social Security retirees will see a big increase in the benefit. “I’m sure changes will be made,” said Martha Shedden, president of the National Association of Registered Social Security Analysts “I don’t know if this is the bill that will pass, but there’s more and more movement on it,” she finished by adding. These words are great news for all seniors collecting their Social Security benefits.