The current maximum Social Security retirement benefit is $ 3,895 per month, or about $ 47,000 per year. Payment could increase further based on COLA 2022 adjustments. Recipients can get their monthly payment estimates for 2021 and 2022 through the online SSO calculator.
Seniors who plan to claim their Social Security payments should carefully consider the year of their claim. According to LIKE, the maximum benefit that a beneficiary can receive in 2021 is:
- $ 3,895 for someone who deposits at age 70.
- $ 3,148 for a person who files their application at full retirement age (currently 66 and 2 months).
- $ 2,324 for someone who deposits at age 62.
The amount provided is estimated by two important factors: the retirement age and the year in which they file the claim.
How to calculate benefits: will social security payments increase?
The retirement age is classified into three categories. Claimants who choose to retire before age 65 would be penalized with lower benefits. Claimants who apply at age 65 or older will receive full benefits, while claimants who apply at age 70 will receive maximum benefits. For reference, benefits are increased payments that accrue for each month delayed in claiming retirement.
The second factor is the increase in the percentage of COLA. According to a previous article, Social Security checks are based on the cost of living and are adjusted accordingly. Simply put, when the cost of living becomes more expensive (groceries, gasoline, medicine and other necessities), social security payments also increase.
In 2021, the social security COLA was 1.3%. By 2022, the COLA is expected to reach 6.2%. Payments could reach an increase of $ 95.67 per month. Once finalized, the new COLA would go into effect from the January 2022 payments.
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How to use the Social Security Payments Calculator
For a much more accurate estimate of Social Security payments, applicants can use their official benefit calculator.
The Quick social security calculator will assess the payment of benefits based on the applicant’s income, age and date of application. Keep in mind that this online tool does not access your personal profile or your earnings history. All data would be calculated and estimated based on the information provided on the tool.
- To use the online calculator, enter your date of birth
- Indicate your income for the current year (2021). You can put “0” if you are already retired. However, you must provide your last year of covered income and the amount in the subsection
- Indicate the month and year of your retirement. The calculator would assume that benefits would start on the scheduled date.
- Finally, you can calculate benefits based on today’s dollars or inflated dollars. As mentioned earlier, analysts are forecasting a massive increase for 2022. You can compare the difference using the calculator on the two options.
2022 Cost of Living Adjustment Forecast (COLA)
AS pointed out that the price of COLA will increase by 2022. He mentioned how much growth in real terms is already evident in the current market.
One of the main contributors to this increase is the possible high gas inflation. This has been linked to soaring electricity prices. The Federal Reserve could counter these problems by raising interest rates. The official COLA 2022 announcement is expected to take place in mid-October.
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