Uncertain years are occurring in the United States surrounding Social Security. Recently there was talk about the lack of trust funds, which would force a reduction in benefits by 2035. There was also talk about the importance of filing for retirement later. All of these details are important to understand the current situation. And to better understand the future it is also critical to understand the present. Social Security in the year 2022 still has a lot to contribute.
Any change in today’s prices will negatively or positively affect Social Security in the future. For that reason, we should never take our eyes off this year’s benefits. Nor should we take our eyes off inflation, which is steadily increasing and directly impacting the pockets of pensioners and SSA beneficiaries.
The COLA and Social Security
The COLA is annual and is announced by the Social Security Administration in October. The increase in retirement, disability and blindness benefits depends on the increase in the CPI-W during the third quarter of the year. After calculating how much prices have increased, the SSA is in charge of saying how many dollars the pension will increase next year.
The schedule of pension payments repeats every month. For that reason, we can know when payments will be made until the end of the year. In any case, the Social Security Administration publishes the complete calendar at the beginning of the year. For the rest of the year, the pension payment days are as follows:
August: 10, 17 and 24.
September: 1, 14, 21, 28 and 30 (Supplemental Security Income pertaining to October).
October: 12, 19 and 26.
November: 1, 9, 16 and 23.
December: 1, 14, 21, 28 and 30 (January 2023 Supplemental Security Income payment).
Knowing this, you only need to know when you are entitled to Social Security. If you were born between the 1st and 10th of the month, you will receive your benefit on the second Wednesday of the month. On the other hand, people born between the 11th and 20th of the month can receive their pension on the third Wednesday of the month. Finally, the fourth Wednesday of the month is the designated day for people born between the 21st and 31st of the month.
Supplemental Security Income payments
As you can see, Supplemental Security Income (SSI) payments also have a set date during the year. The payment date for this Social Security benefit is the 1st of each month. But sometimes that day is a holiday or a weekend. For this reason, it is not on that day that the payment is made, but on the immediately preceding working day.
So we can see that in September, November and December the Social Security Administration will send the SSI on the 1st of the month. But the different part comes in October, since the 1st is a Saturday. On this occasion, September 30 is the immediately inside working day, so it is sent on that day. We have the same situation in January next year 2023, so all the beneficiaries of this benefit will receive it in 2022, specifically on December 30.
A new law proposal to improve the Social Security system
All of the above is important to know what will happen to Social Security in 2023, but there is something that may be even more important. There is a Bill that could completely change the amount pensioners collect from Social Security every month. This bill would raise taxes for the highest earners in the United States. People who are paid more than $250,000 will have to pay extra taxes.
According to this new bill, thanks to these taxes the trust funds would not be depleted so soon. In addition to that, there would also be a $200 monthly increase in Social Security retirement benefits. In any case, all this information has not yet become effective and we have to wait for the law to be approved and start its operation.
Social Security Payment Schedule
The Social Security Administration’s schedule for payment of Americans’ subsidies always follows the same pattern. The payment days are the second, third and fourth Wednesday of the month. On each day a different group of people are paid based on their date of birth.
If you have any problems or delays with the payments, you should first contact your bank, as it is very common for them to withhold money for various reasons. If your bank is unable to help you, then contact your local SSA office.