Social Security Update: New Bill Could Give $2400 Boost

A Social Security update has been implemented on its different benefits for the year 2023, including an 8.7% cost-of-living adjustment boost, which has been considered to be the biggest one in decades.

The increase in COLA was a response to the rising inflation rate. Social Security payments recipients in 2023 could receive an average monthly retirement benefit of $1,827 from $1,681, according to AARP.

The maximum benefit for workers who claim their Social Security at full retirement age will be $3,627 a month, which was an increase from $3,345 in 2022.

The tax rate has not changed, but the amount of income subject to it increases in line with the COLA.

A new change was reintroduced in the Social Security payments, with Sen. Bernie Sanders formally relaunching the Social Security Expansion Act on February 13.

Social Security Expansion

The bill's terms stated that current Social Security recipients or those who turn 62 in 2023 would receive an additional $200 in their monthly payments, equating to an increase of $2,400 per year.

Sanders noted in a statement that half of older Americans have no retirement savings, and almost 50% of their nation's seniors are trying to survive on an income of less than $25,000 a year.

The Vermont lawmaker noted that their job is to "expand Social Security," which would give every senior in America a retirement "with dignity that they deserve."

The Social Security Expansion would be funded by raising the cap on earnings eligible for Social Security taxation.

Those earning $162,000 in income are taxed for Social Security. The Act would lift the cap and subject all income above $250,000 to the Social Security payroll tax, which would ensure that the agency is fully funded for the next 75 years.

It would not raise taxes for more than 93% of American households that make $250,000 or less.

Meanwhile, GOP leaders noted that they are also not interested in making cuts to Social Security or Medicare.

Senate Minority Leader Mitch McConnell made comments on the matter on February 14, saying, "There is no agenda on the part of Senate Republicans to revisit Medicare or Social Security. Period."

Social Security Payments

The final round of the Social Security Administration's retirement payments for February will be distributed on February 22, with the payments worth up to $4,555.

The amount of payments each recipient would receive depends on when they chose to retire and start receiving Social Security benefits.

The highest payment of $4,555 will be distributed to those who retired at age 70.

Those who chose to retire at 67 will be paid the maximum amount of $3,627.

Meanwhile, those who retired at 62 will get up to $2,572.

Washington Examiner noted that the amount of money recipients are receiving will be subject to change or even decrease if Congress does not figure out proper funding by 2034.

The change would be due to the increasing number of retirees and the reduction in the number of workers.

Regular Social Security payments are also based on earnings that beneficiaries made throughout their working days.

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Written by: Mary Webber

WATCH: Social Security Benefits Increase in 2023 - from U.S. Social Security Administration