The precise dates when millions of retirees will get advanced Social Security payments of an amount of $1,657 have been disclosed since the 2023 presumption of a COLA raise goes on to mount.
Last year, the average monthly payment for retired workers was $1,565, and that increased to $1,657 with the COLA increase by 5.9 percent.
February’s first set of SSI checks is on the pipeline to provide support to beneficiaries with surged funds.
The checks being released this month are being given out by the SSA in three waves based on the birth date of the recipient, on February 9, 16, or 23.
$3,895 was the highest amount of benefit for a person who retired at the age of 70 last year, but in case you retire at the age of 70 this year then your maximum benefit could be $4,194.
In the meantime, VA Claims Insider assumes that COLA will raise by 2.9 percent by next year with “soaring inflation in the US economy.”
Let’s Get Into Some COLA Update
Some May See Payment Decrease
As per a report from Market Watch, despite the cost-of-living adjustment, some people might receive a decline in Social Security payment.
For example, some people may have made too much money earlier this year if they are receiving Social Security benefits whilst still working.
Amendments in Medicare coverage and surcharges may also affect your payment, according to the report.
How Do Social Security Recipients Pay Taxes?
If it emerges that you are required to pay taxes on your benefits, you can either choose to make quarterly estimated payments to the IRS, or you can opt to have federal taxes held back when you initially apply for benefits.
You can opt for 7%, 10%, 12%, or 22% of your monthly benefit held back for taxes.
What Is the COLA Formula?
The COLA is evaluated based on data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the cost of popular goods and services.
The change in inflation signifies that retired workers can anticipate a surge of $92 on average, making their monthly benefit from $1,565 to $1,657.