Some people may not be aware that Social Security provides benefits to children of disabled or deceased workers if they are full-time students. More help for children of deceased workers In 2020, the Special Minimum Benefit paid about $900 per month, according to the Social Security Administration. Under the legislation, it would be indexed so that it is equal to about 125% of the federal poverty line, or about $1,400 a month. The bill would also boost benefits for the lowest income earners in the U.S., who receive benefits under a program called the Special Minimum Benefit. If the CPI-E had been used to index the annual COLA for Social Security, a senior who filed for Social Security benefits over 30 years ago would have received about $14,000 more in retirement than compared with the CPI-W, according to the Senior Citizens League. For instance, it puts more weight on health care expenses, which can be considerable for senior citizens. The CPI-E more accurately reflects seniors' spending patterns, according to experts on Social Security. One of the primary changes would be to base the annual COLA on the Consumer Price Index for the Elderly (CPI-E), rather than the current index that the Social Security Administration uses for its calculation - the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). There are some additional tweaks that would boost benefits over the long-term. Inflation in May rose 8.6% from a year ago, a four-decade high that pushed up the cost of food, shelter, energy and other staples.Ī benefits boost: $200, plus COLA changesĪnyone who is a current Social Security recipient or who will turn 62 in 2023 - the earliest age at which an individual can claim Social Security - would receive an extra $200 per monthly check. But this year, beneficiaries are seeing their purchasing power wane as inflation overtakes their latest COLA increase of 5.9%. Social Security recipients receive one cost-of-living adjustment, or COLA, each year, which is based on inflation and is supposed to keep their benefits in line with rising prices. The plan comes after the Social Security Administration earlier this month said Americans will stop receiving their full Social Security benefits in roughly 13 years without actions to shore up the program. Peter DeFazio, a Democrat from Oregon, and Senator Bernie Sanders, an Independent from Vermont. The Social Security Expansion Act was introduced June 9 by Rep. Now, some lawmakers have a plan to boost Social Security payments by $2,400 per recipient annually, while also shoring up the program financially. are being hit hard by inflation, which has outpaced increases in their benefits this year. Seniors and other Social Security recipients in the U.S.
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