Social security benefits are usually adjusted to account for inflation. Those adjustments have mostly resulted in a raise for recipients. As a result of soaring product prices, social security payments for some recipients could rise more than $200 in 2022. If you’re a retiree or about to retire, you may want to know when you'll get that money.
The government introduced the Social Security benefits program in 1935 to provide a source of income for Americans in retirement. People contribute to the program during their working years through tax, where those on employment set aside 6.2 percent of their wage and their employer matches that to 12.4 percent.
Self-employed people are required to allocate 12.4 percent of their income to social security. You can claim a social security tax refund before retirement if you contributed too much.
Who benefits from Social Security?
Social security payments are made to retirees and disabled workers who contributed to the program, along with their dependents (such as a spouse, children, or parent).
Since the benefits get adjusted for inflation, the payments keep changing. Factors such as age and amount of income during working years also determine the size of your social security check. In 2021, the average retiree received about $1,560 per month, to a maximum of $3,895.
When will social security recipients get an extra $200 a month in 2022?
In 2021, social security recipients got a 1.3 percent raise after adjustments for 2020 inflation, adding $20 to their checks. The Senior Citizens League estimates that social security benefits could see a 6.2 percent boost in 2022 because of the severe inflation in 2021.
A 6.2-percent adjustment would add an average of about $95 to the monthly checks, and up to $200. The Social Security Administration is expected to announce the 2022 inflation adjustments in Oct. 2021, and any adjusted payments would into effect in Jan. 2022.
A fourth stimulus check for social security recipients
After the COVID-19 pandemic struck, many businesses closed and millions lost jobs. The government sent out three rounds of stimulus checks to help Americans cope. Square and PayPal assisted by distributing the stimulus checks through their apps. The Senior Citizens League, a nonpartisan group, is seeking a fourth stimulus check for retirees on social security.
The group argues that soaring inflation has left many seniors unable to afford necessities such as food. Some have even resorted to skipping meals or lining up at food banks to stretch their social security checks. The Senior Citizens League is pushing for a special $1,400 emergency check for seniors.
Will a government shutdown affect social security payments?
Social security beneficiaries continue receiving their payments, even when the government shuts down over budget issues. However, checks may be delayed because of labor shortfalls in the processing and shipment of payments.
Although a government shutdown wouldn’t affect social security benefits, the debt ceiling could hurt retirees. If Congress fails to reach a deal on the debt limit debate, millions could stop receiving their social security payments for some time, Janet Yellen has warned.