The current maximum Social Security retirement benefit is $3,895 per month or approximately $47,000 per year. The payment could still grow depending on the 2022 COLA adjustments. Recipients can get their monthly payment estimates for 2021 and 2022 through the SSO online calculator.
Seniors planning to claim their Social Security payments should carefully consider their year of application. According to AS, the maximum benefit a recipient can receive in 2021 is:
- $3,895 for someone who files at age 70.
- $3,148 for someone who files at full retirement age (currently 66 and 2 months).
- $2,324 for someone who files at 62.
The amount provided is estimated by two important factors: the age of retirement and the year they file the claim.
How to Compute for Benefits: Will Social Security Payments Increase?
Age of retirement is classified into three categories. Applicants who chose to retire before age 65 would be penalized with lower benefits. Applicants who apply at age 65 or older would receive full benefits, while applicants who apply for benefits at age 70 would have maximum benefits. For reference, benefits are increased payments that accumulate for every month delayed in the retirement application.
The second factor is the COLA percent increase. According to an earlier article, Social Security checks are based on the cost of living expenses and are adjusted accordingly. Simply put, when the cost of living gets more expensive (groceries, gas, medicine, and other necessities), the Social Security payouts also increase.
In 2021, the Social Security COLA was 1.3 percent. By 2022, COLA is projected to be at 6.2 percent. Payments could get up to a $95.67 increase per month. Once finalized, the new COLA would be effective immediately on January 2022 payments.
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How to Use Social Security Payments Calculator
For a much more accurate estimate on Social Security payments, applicants could use their official benefit calculator.
The Social Security Quick Calculator will estimate benefit payment based on the applicant's earning records, age, and date of application. Keep in mind that this online tool does not access your personal profile or earnings history. All data would be calculated and estimated based on provided information on the tool.
- To use the online calculator, enter your date of birth
- Provide your earnings in the current year (2021). You could put "0" if you are already retired. However, you should provide your last year of covered earnings and amount in the subsection
- Provide your retirement month and year. The calculator would assume that benefits would start on the date provided.
- Lastly, you could calculate benefits based on today's dollars or on inflated dollars. As previously mentioned, analysts predict a massive boost for 2022. You could compare the difference by using the calculator on both options.
2022 Cost of Living Adjustment (COLA) Prediction
AS emphasized the COLA price will increase by 2022. It mentioned how real-term growth is already evident in the current market.
One of the biggest contributors to this increase is the possible high gas inflation. This got linked up with soaring electricity prices. Federal Reserve could counter these problems with increased interest rates. The official announcement for 2022 COLA should happen sometime in mid-October.
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