Connect with us

Hi, what are you looking for?

Finance

Big Boost for Retirement Income: $2,400 Monthly Social Security Increase Under Review

Big Boost for Retirement Income: $2,400 Monthly Social Security Increase Under Review
All rights reserved to the original owner of the photograph. (Photo: Nick Youngson)

The Social Security Expansion Act was formally reintroduced to Congress on February 13 by Vermont Democratic Senator Bernie Sanders. This time, he had a lot more help from other lawmakers pushing for the bill which is a big boost for the retirement income of its beneficiaries.

Big Boost for Retirement Income: $2,400 Monthly Social Security Increase Under Review

A bill titled “Social Security Expansion Act” is presented to Congress (Photo: https://www.harrell-law.com/)

Sanders and U.S. Rep. Peter DeFazio put forward the Social Security Expansion Act for the first time on June 9. (D-Ore.). Under the terms of the bill, every Social Security recipient or the person who will turn 62 in 2023 would get an extra $200 in their monthly payments.

If the bill passes, Social Security recipients could get an extra $2,400 a year in retirement income. This would be great for seniors, whose annual cost-of-living increases are being wiped out by inflation.

Even though the bill was first introduced on June 9, it hasn’t moved forward. Nevertheless, due to anticipated Social Security cuts and the most recent debt limit issue, Sanders and a new set of supporters, including Sen. Elizabeth Warren (D-Mass.) and Reps. Jan Schakowsky (D-Ill.) and Val Hoyle (D-Ore.), have brought it up once more.

The latest draft of the bill also gives a way forward for the program, which is severely underfunded. By taxing the nation’s highest earnings, future generations will be able to get benefits until 2096. According to a press release from Sanders’s office, this will be done “without raising taxes by a single penny on more than 93% of American households making $250,000 or less.”

Sanders stated in the press release, “Our job is not to cut Social Security retirement income when almost half of older Americans have no retirement income and almost half of our nation’s seniors are trying to get by on less than $25,000 a year.”

Our responsibility is to increase Social Security retirement income so that every senior in America may retire with dignity and that everyone with a disability has the stability they require.

The legislation we’re presenting today will result in an annual increase in Social Security retirement income of $2,400. Also, by ensuring that the richest members of our society contribute fairly to the system, it will maintain Social Security’s financial stability for the ensuing 75 years.

Currently, a person earning $160,000 annually contributes the same amount to Social Security as a Wall Street Executive earning $30 million. This is ridiculous, and our bill puts an end to it. This will allow us to protect Social Security retirement income for future generations and help millions of seniors get out of poverty.

Sen. Warren also said, “As House Republicans try to use a fake debt ceiling crisis to cut Social Security retirement income that Americans have earned, I’m working with Senator Sanders to expand Social Security retirement income and extend its solvency by making the wealthy pay their fair share, so that everyone can retire with dignity.”

Republican leaders say that they have no plans to cut Social Security or Medicare.

The leaders of the GOP are also saying that they don’t want cuts to Social Security or Medicare. The Hill says that Senate Minority Leader Mitch McConnell (R-Ky.) said something about this on Feb. 14.

“It comes up again and again. He said, “The president talked about it in his State of the Union address.” “Okay, let me say it again. There is no plan for Medicare or Social Security to be looked at again by Senate Republicans. Period.”

Speaker of the House Kevin McCarthy (R-Calif.), who agreed with this idea, said in January that cuts to Social Security and Medicare should be “completely off the table.” McCarthy said that these programs are supported by his party.

He told CBS’s “Face the Nation” on Jan. 29: “If you read our Commitment to America, all we talk about is strengthening Medicare and Social Security.”

 

In a little more than ten years, will Social Security run out of money?

The Social Security Expansion Act bill is important for more than just the talk about the debt ceiling crisis. First, it comes after the Social Security Administration said in 2022 that people won’t be able to get their full Social Security benefits in about 13 years if nothing is done to improve the program.

It also comes at a time when inflation is at a level that has never been seen before. This has a big effect on seniors on fixed retirement income, many of whom depend only on Social Security payments.

According to a press release from Senator Sanders’ office, “Nearly 40% of seniors depend on Social Security for most of their retirement income; one in seven relies on it for more than 90% of their retirement income; and nearly half of Americans 55 and older have no retirement savings at all.”

The goal of the new bill is to make things easier financially by giving each person a bigger monthly check. As of December 2022, the average Social Security check was about $1,658, so a $200 increase would be a 12% boost.

Sanders, Warren, Schakowsky, and Hoyle are not the only Democrats who support the Social Security Expansion Act. Sens. Kirsten Gillibrand (N.Y.) and Cory Booker (N.J.) and Reps. Alexandria Ocasio-Cortez (N.Y.), Jamie Raskin (Md. ), and Rashida Tlaib (Mich.) are also in favor (Mich.). The bill has also been backed by more than 50 groups.

 

Read More:

Potential Impact of COLA and Increased Spending on Inflation in Social Security 2023

Mike Pence Asserts Social Security Should be Privatized

Social Security Beneficiaries Receive Extra Payment In March

Copyright © 2022 Pro Claimers. Theme by MVP Themes, powered by The Santa Clarita Valley.