Medicare payments will drop a little month…..
These changes kick in January 1st…..
You are gonna hear about shortfalls in Social Security….
There are two parts to the program….
The Retirement part is actually good , as of now, for 12 to 13 years…
The Disability part isn’t as strong….
The media does NOT report that Social Security will NOT run completely run out of money for decades ….
No change in system would have the system drop it’s current payments down to 80% for decades…
Congressionbal lawmakers are well aware of the program’s status…
They have a problem….
Any changes in the system affected seniors would generate a political backlash that WOULD affect those lawmakers DIRECTLY…
Sometime in the future something will have to be done…
A Godd economy and employment would put the issue off for more years….
About 70 million Americans collecting Social Security will receive an 8.7 percent bump in their benefits next year, the largest raise since 1981, according to the Social Security Administration. That will provide some measure of relief to retirees struggling with soaring prices on everyday necessities, from groceries to housing.
The increase — which will help about 52.5 million people 65 and older and 12 million people with disabilities, among others — is based on the Labor Department’s latest report on the Consumer Price Index, released on Thursday, which said that prices increased 8.2 percent in the year through September.
Many retirees depend almost entirely on Social Security checks. But even retired households 65 and older who are squarely in the middle of the income distribution, with an average annual income of about $41,000, relied on Social Security for a little more than half their income in 2019, according to calculations by the Center for Retirement Research, using data from the Survey of Consumer Finances that year. (Other analyses found that people may be less reliant.)
Social Security also helps lift millions of older Americans above the poverty line, which stood at $12,880 for an individual as of 2021. A greater number of people 65 and older — about 10 percent — slipped below last year, up from 8.9 percent in 2020. It was the first increase since 2016, according to the latest U.S. Census Bureau data. One likely culprit: More older people, particularly those with lower incomes, were forced into an early retirement because of the pandemic, experts said.
“A significant increase in the COLA is most welcome, but it doesn’t solve the increase in poverty we saw on the 65-plus numbers,” said Ramsey Alwin, president and chief executive of the National Council on Aging, a nonprofit advocacy group for older adults. “To us, it’s a warning bell. These numbers will increase in the future unless we shore up the programs we need to age well.”
Though the financial health of Social Security improved slightly in 2021 from the previous year thanks to a rebounding economy — when more people are working, the program collects more taxes on wages — it faces a longer-term shortfall. The trust fund that pays retiree benefits will be depleted in 2034, at which time its reserves will run down. When that happens, incoming tax revenue will be enough to cover only 77 percent of all scheduled benefits. If no action is taken, all benefits will shrink by 23 percent.
Demographic shifts have led to that imbalance. More baby boomers are collecting payments. Retirees are living longer. At the same time, a declining birthrate has produced fewer workers contributing to payroll taxes — the primary source of Social Security funds. The payroll tax is split between employers and employees, who each paid 6.2 percent of wages, up to a taxable maximum of $147,000, in 2022. Next year, up to $160,200 of earnings will be subject to these taxes….