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October 7, 2022
SSA 2023 Projections
Social Security beneficiaries will likely see a big increase in monthly benefits starting in January 2023. With inflation at a 40 year high, The Senior Citizens League estimated the Cost Of Living Adjustment (COLA) for next year could be 8.7 percent. Based on the most recent report on the Consumer Price Index by the US Bureau of Labor and Statistics, some estimates reflect a double digit COLA of over 10 percent. If that happens, it will be the first double digit COLA since 1982. In addition to the anticipated large COLA, Medicare Part B premiums are projected to decrease $5.20 in 2023. What this means is SSA beneficiaries that also have Medicare coverage will be able to keep the entire COLA rather than the increase being offset by Medicare Part B premium increase. The larger COLA will add tens of billions of dollars to SSA liabilities potentially bringing the insolvency date forward a full year sooner. The maximum wage that is subject to Old-Age, Survivors, and Disability Insurance (OASDI) taxes is expected to increase to $155,100. Medicare taxes remain unchanged and are applicable to all your income. As with all of your retirement concerns, please reach out for any additional information on how to structure your SSA income within your retirement. Maryellen Eckert SSA Specialist
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June 7, 2022
SSA Solvency
The COVID-19 Pandemic, 2020 Recession, inflation, fluctuations in entitlements, birth rate, and immigration data have affected SSA solvency. If you have read the headlines, most state SSA extends benefit solvency by a year. This is only a small portion of the complete picture. Current analysis does project the Old-Age and Survivors Insurance (OASI) Trust Fund to indeed pay full benefits for an additional year, updating to 2034. After 2034 the OASI Trust Fund will only be able to sustain 77 percent of scheduled benefits. The other Trust Funds: The Disability Insurance (DI) Trust fund will only be able to fund benefits until 2057. The Hospital Insurance (HI) Trust Fund has extended its full coverage until 2028 after which it will have sufficient fund to pay 90% of benefits. The Supplementary Medical Insurance (SMI) Trust Fund is funded into the indefinite future since its revenues are supplemented by beneficiary premiums. For detailed information, I recommend you review the attached 2022 Board of Trustees Annual Report on the SSA and Medicare programs: rypdf (ssa.gov) Our congressional representatives can address these deficiencies in a variety of ways, including, but not limited to: * entitlement cuts * tax increases * adjustments in full retirement age Historically, representatives have not passed solutions to these issues due to political unpopularity. Ideally, these issues are best resolved proactively rather than reactively. Your local congressional representative is where to look for solutions to this issue. Maryellen Eckert SSA Specialist
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March 7, 2022
Social Security Entitlements
Did you know that only 80% of Americans know about SSA disability benefits? That only 21% understand how benefits are calculated? Only 63% are aware that a widow(er) need not be caring for children to qualify for survivor benefits? It’s important to educate yourself and your family of potential benefits. For Survivor benefits you may be eligible to receive monthly benefits, including: – A widow or widower age 60 or older (age 50 if disabled) – A widow or widower of any age caring for the deceased’s child who is under age 16 or disabled – An unmarried child of the deceased who is either under age 18 or disabled before age 22 – A stepchild, grandchild, stepgrandchild, or adopted child under certain circumstances – Parents, age 62 or older, who were dependent on the deceased for at least half of their support – A surviving divorced spouse, under certain circumstances SSA offices have now finally reopened to the public. You can now visit your local SSA office to for social security card processing and all other general inquiries. Claim applications are by appointment only. You can contact SSA directly form more detailed information on Survivor benefits or reach out to me directly. Maryellen Eckert SSA Specialist
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December 7, 2021
What’s new for SSA this new year?
Well, it’s that time of year again when you’ll want to check out the new 2022 SSA limits. Of note, the annual maximum taxable earnings is now 147,000. Once your earnings hit that threshold no more SSA taxes are taken from your pay. See all of 2022 details by opening the link below: https://www.ssa.gov/news/press/factsheets/colafacts2022.pdf Also beginning in January, SSA offices are working on fully reopening to the public. Hopefully, you will be able to visit your local office without a scheduled appointment soon. They are still working on all the backlogs COVID shutdowns created. There is also new legislation pending that, if passed, will affect SSA. For years, the Windfall Elimination process (https://www.ssa.gov/pubs/EN-05-10045.pdfprocess) has been a source of contention with the public. The below proposed legislation directy affects this process as well as government pension offset provision ( https://www.ssa.gov/pubs/EN-05-10007.pdf ). This legislation will directly affect how the cost of living adjustment is calculated. If you are interested in its passage, you can contact your local congressional representative to share your view. https://www.congress.gov/117/bills/hr5723/BILLS-117hr5723ih.pdf Happy New Year! Maryellen Eckert SSA Specialist
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