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In a bit of good news for aged Americans, Social Security payments may take their biggest jump in years. The surge could be as high as 10%, which is larger than recent increases in the consumer price index.
The Motley Fool recently reported "Each fall, the Social Security Administration (SSA) announces its annual cost-of-living adjustment (COLA) for the following year, and 2023's hike could be one for the record books." Since some Americans rely completely on these payments, the effects on standard of living will be significant. About 65 million people collect some form of Social Security today.
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Social Security carries an official name of the "Old-Age, Survivors, and Disability Insurance (OASDI)." Even the rich can get benefits. The income calculation tops out at a maximum of $142,800. People with incomes above that are not penalized because they may not need the money.
One anxiety people who receive payments now and will in the future have is that the Social Security funds will start to run out of money. This could begin as early as 2034. That means people working today may miss out on benefits as they retire. Among the solutions suggested is that the maximum income that is taxed is higher than the current level. The age at which people can start to be paid also could be moved above 62. Each of these still has the effect of robbing Americans currently in the workforce of benefits older Americans have today.
ALSO READ: 10 Tips to Get the Most Out of Your Social Security Income
All things considered, it is good to be retired today, at least as far as Social Security payments are concerned. For people who are 50 years old or younger, the future is not so bright financially.
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