News

Today they announce in the United States an increase in payments for millions of people

Millions of Americans are about to receive what could be the largest payment increase of their lives. We will explain if you are one of the beneficiaries and what you should do.

As has been said, today the largest increase in decades will be announced as a result of the inflation experienced in the country.

In a few hours, the US government will announce the percentage increase that the monthly payments of Social Security beneficiaries will experience by 2023.

How much will the increase in COLA payments be?

Economic experts say it will be the largest increase established in 40 years. And it is that the alarming effects that the high cost of living force to cushion the domestic economies of the most disadvantaged. Let us remember that already in 2021 the increase was 5.9%, the highest in recent decades.

Why will there be an increase in social security payments in the United States?

This increase is part of an annual procedure in which the Washington government rearranges Social Security payments to keep up with the cost of living in the country. In other words, it is about alleviating the burden of inflation with higher payments to citizens.

The process is known as the cost of living adjustment or COLA, and although it may not seem like it, it causes great controversy, because for many it is insufficient. It is said that the data used by the government is not faithful to the reality that our citizens live. In other words, the inflation is much more disproportionate than the equivalent payment.

The other thing is that it makes no difference between a beneficiary from California and one from Ohio, for example. In other words, the increase is the same regardless of where you live or the size of each beneficiary’s savings.

How is the increase in payments calculated?

It is established based on the CPI-W index, which collects and analyzes the prices paid by individuals and white-collar workers. Exactly, you can see the difference in prices between the summer of last year and the current one.

However, many believe that it should be calculated according to the IPC-U index, which is more comprehensive and precise since it analyzes 92% of the total population of the United States.

Will it be the biggest increase in COLA payments in history?

No, although it is the largest in memory in 4 decades. Let us remember that, in 1981, the increase was 11.2% with respect to previous income. And it is not expected to exceed that figure.

When do increased COLA payments start?

From January 2023, and they will be permanent, and if there is a new increase the following year, it will be added to the new and higher payment that the beneficiaries have received after this last increase.

Three times since the 2008 financial crisis, the US government has announced a zero increase in Social Security benefits because inflation was so weak.

Who gets pay increases?

More than 65 million people who benefit from the Social Security system in the United States will see an increase in payments. Some estimates say that the increase can be up to 9% compared to the current amount.

What do I have to do to receive the pay increase?

Absolutely nothing. According to government officials, the increase will come automatically for all beneficiaries.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button