By Tashi McQueen, AFRO Political Writer,
Report for America Corps Member,
tmcqueen@afro.com
The Social Security Administration Office (SSA) recently announced that around 70 million Americans will benefit from an 8.7 percent boost in Social Security and Supplemental Security Income (SSI) benefits. This means those who receive SSI benefits will receive an additional $140 each month come January 2023.
“This year’s substantial Social Security cost-of-living adjustment (COLA) is the first time in over a decade that Medicare premiums are not rising,” said Acting Commissioner Kilolo Kijakazi of SSA in a statement. “With this increase, we can provide more support to older Americans who count on the benefits they have earned.”
Payments to approximately 7 million SSI beneficiaries will start on Dec. 30. The SSA office said in a statement, “The Social Security Act ties the annual COLA to the rise in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.”
Based on the supplement in average wages, the taxable maximum of the Social Security tax will accrue from $147,000 to $160,200 in January.
“As helpful as the 8.7 percent COLA may sound, it’s more like a band-aid on a gaping financial wound,” said Max Richtman, president and CEO of the National Committee to Preserve Social Security & Medicare (NCPSSM), in a statement. “Seniors have had to make do with historically inadequate COLAs without a boost in base benefits for the past fifty years.”
As of September, the annual inflation rate in America is at 8.2 percent. Trading Economics said this is the lowest it has been in seven months.
“Older people will have a chance to get ahead of inflation due to a rare combination of rising benefits and falling premiums,” said Karine Jean-Pierre, White House Press Secretary, in a statement. “We will put more money in their pockets and provide them with a little extra breathing room.”
As this historical shift occurs, so does contention between Democrats and Republicans regarding a budget resolution created by several House Republicans.
The GOP desires to reduce Social Security and Medicare benefits and eligibility.
Their budget, “The Blueprint to Save America,” aims to decrease federal spending by raising the retirement age to 70, redirect saved funds toward the military, and several other significant budget-cut initiatives.
Currently, Americans can utilize their benefits as early as 62.
Democrats are in considerable opposition to the proposed shift, clearly pushing to secure more funds for Social Security benefit programs.
“Older adults and their families should weigh their votes carefully this fall,” said Richtman. “Elect representatives committed to boosting Social Security.”
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