It is that time of the year. I am not talking about the change of season. Social Security recipients don't find out how much their benefits will increase until the last minute. TheSSA is going to make a big announcement in October.
It will most likely be the largest increase in over four decades when the cost-of-living adjustment is implemented. The president wants to give an extra Social Security increase to a group of people.
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If you hold off until your full retirement age or 70, you can increase the amount of your monthly Social Security check. The only way Social Security benefits will grow is through the annual cost of living adjustment.
President Biden would like to change this situation for some people. He advocated for higher Social Security benefits for the elderly. Biden wants to increase the monthly checks for Social Security recipients who have been there at least 20 years.
The higher benefits would be phased in a little earlier under the president's proposal. In the 16th year of receiving Social Security benefits, the primary insurance amount would be increased by 1%. If a person started drawing retirement benefits at the normal retirement age, PIA would be their benefit.
Biden wants older retirees to have a bigger Social Security increase. The concern is that these people are more likely to exhaust their retirement savings and end up in poverty.
Older retirees shouldn't be looking for more benefits than what they will get with their COLAs. Biden's proposal is not on the radar screen in D.C.
The Social Security plan has not been implemented. The president wants to change the way Social Security COLAs are calculated. There hasn't been anything happening on this front yet.
Biden has not pushed for Social Security legislation to be enacted. Increasing infrastructure spending and allowing Medicare to negotiate prices for costly prescription drugs have been higher priorities for Biden.
The president has yet to finish his second year in office. There's a lot of time left for Biden to implement his plans.
Is there a chance that the benefits for older retirees will be increased in the next few years? The change is not likely to be enacted by itself. Social Security will become insolvent sooner than projected because of Biden's proposal.
It is most likely that the idea will become a reality if it is bundled with other Social Security reforms. Biden would like to tax income over $400,000 to help fund Social Security. Many Americans support this proposal. Tying a benefits increase for older retirees to a change that would prevent future Social Security cuts would increase the chances of passing in Congress.
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