Millions of Americans might get a monthly boost of $100 in their social security checks by 2022. This is because of the anticipated 6.2 percent cost-of-living adjustments that have taken place in these last few months. Fortunately for everyone, there is an online calculator to accurately calculate the monetary benefits you can look forward to.
Americans who have reached the age 62 are entitled to start receiving their social security benefits. Note, however, that an early claim on the money would result in fewer benefits on their full retirement age at 70.
Before calculating the money, eligible Americans should be warned that different factors affect the social security benefits. In fact, they could receive a significantly bigger bonus if they decide to wait until next year.
Social Security Income Benefits: How Much Can I Get?
The social security monetary benefits directly increase and decrease based on cost of living, officially referred to as Cost-Of-Living Adjustments (COLA). The calculated data is estimated through Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
In highlight, if the general expenses like bills, rentals, and groceries have increased, the receivable allowance from social security benefits would also increase. Notably, the pandemic affected much of our lifestyle. Eligible Americans who would receive their monetary benefit should be informed of this new estimate.
According to The Sun, the consumer price index spiked by 5.4 percent in July. Therefore, receivable social security benefits were projected to have a 4.7 percent increase in May, 6.1 percent increase in July, and 6.2 percent by August.
In 2021, the Social Security COLA declared was 1.3 percent for approximately 70 million Americans. With this figure, social security payouts amount to $1,543 per month and $18,516 per year.
In estimate, a 6.2 percent increase would add approximately $95.67 per month. Mary Johnson, a social security policy analyst, referred next year as "highest paid since 1983 when it was 7.4%" per The Sun.
Social Security Administration (SSA) said the official announcement for the next COLA is set on October. The new COLA should immediately go into effect by January 2022.
Social Security Income Calculator: How to Calculate Benefits
For eligible Americans who want to receive their social security benefits, you could use the SSA online calculator to compute the exact estimate. Note that this calculator does not access your personal and earning records and would only provide estimates by the available information
To use the online calculator, you have to enter your "date of birth" and "earnings in the current year (2021)." In the circumstance that you have already retired, provide the last year where you had covered earnings.
Afterward, the calculator would compute your benefits by age. It would specifically inquire about the "full retirement date option" where you would provide the month and year.
Lastly, the calculator would inquire if you want an estimate based on "today's dollars" or by "inflated (future) dollars." Eligible Americans interested in getting their benefits this year should take the first option, while curious ones who want a prediction for 2022 inflated benefits should pick the latter.
The calculator would provide a full report of your benefits for retirement and for particular circumstances like disability or survivors.
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