Payments for the cost-of-living (COLA) adjustment has began distribution since January 11 and 18; and another distribution in January 25. (Photo: Marca)
The distribution of the increased payments has already started on January 11 for retirees whose birth dates fall on the first through the 10th of their birth month. On January 18, beneficiaries born between the 11th and 20th also received their payments. Meanwhile, retirees born between the 21st and 31st of their birth month will receive their payments on January 25. The rest of the payments for the following months will be distributed on the second Wednesday of each month.
The distribution is due to the increase in the cost-of-living (COLA) adjustment to 8.7%, the biggest in decades. Social Security Administrator’s acting commissioner also added during the announcement, “substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned.”
Mary Johnson, a policy analyst at the Senior Citizens League, said on an interview in Fox News, “A Social Security cost-of-living-adjustment of 8.7 percent is rare—enjoy it now. This may be the first and possibly the last time that beneficiaries today receive a COLA this high.”
Last year, Johnson pointed out that higher security payments may cause problems for some pensioners. They can reduce eligibility for specific social programs such as food stamps and health insurance, pushing people into higher tax brackets.
In an interview with USA Today, Johnson also said, “These are income-based programs. Most, if not all, are easily administered through the states. If we’re forecasting a COLA that’s close to 9 or 10 percent, yes, of course, that’s going to affect, not only your eligibility for low-income benefits, it’s going for everyone else, for people who don’t get benefits.”
Joe Elsasser, the president of Covisum – a Social Security claiming software, also agreed with Johnson. Elsasser said that the increase will not indicate that there would be an increase in the pensioners’ purchasing power, as prices for food, gas and other goods are still relatively high. He added, “Although it might seem like a raise, it’s probably not a real raise.”
