Consider this, 5 per month is about one quarter of the average ,523 per month Social Security benefit in 202About one third of those participating in our 2020 Senior Survey indicated they spent that much on their total healthcare costs. Another 31% said they spend more than ,000 a month on total healthcare costs - roughly two-thirds of the average Social Security benefit! These findings are particularly troubling considering that the Government Accountability Office estimated in 2019 that almost half of households with people aged 55 and older have no retirement savings or other form of pension outside of Social Security..The Social Security Cost-Of-Living Adjustment is likely to be the first target for cuts. Most deficit plans in recent years propose tying the annual inflation boost to a more slowly - growing consumer price index known as the chained CPI. The new tax legislation, in fact, adopts the chained CPI to adjust tax brackets and the new expanded standard deduction. That will mean the standard deduction will grow more slowly than before and that people will wind up in higher tax brackets, or a greater portion of their income will be subject to tax, more quickly than before. For retirees, the chained CPI would mean lower COLAs, as well - if Congress extends the change to Social Security..With both chambers of Congress adjourned, the 113th Congress has officially come to a close. Lawmakers are expected to return to Capitol Hill on Monday, January 5th, to begin the first session of the 114th Congress. TSCL looks forward to working with both new and veteran lawmakers in the New Year, and we will continue to advocate tirelessly on behalf of our members and supporters in 2015..Since you were born in 1954, however, you qualify to use a "restricted application" strategy to maximize your benefits at full retirement age. Waiting just two more years could significantly boost lifetime Social Security income. People born after 1954 may no longer use this strategy, so consider this:.A new analysis by The Senior Citizens League, one of the nation's largest nonpartisan seniors groups, indicates that changes the government has already made in the late 1990s to how it calculates the CPI have resulted in cutting the Social Security benefits of today's seniors by about 7 percent since 2000. Social Security recipients, who retired with average monthly benefits of about 6 in 2000, lost 7 this year alone, and about ,293 in COLA growth over the past twelve years. According to the analysis, the CPI changes that became effective by 2000 will cut more than ,000 of Social Security income from individuals who retired with average benefits over a 25-year retirement. "Chaining the COLA would further deepen the loss of benefits," says Larry Hyland, Chairman of TSC.TSCL is disappointed that Congress has not yet taken action to avert an irresponsible default on the federal debt, and we urge our members and supporters to contact your representatives in Congress to request a clean and immediate increase in the debt ceiling. For updates on the status of this important issue, visit TSCL's website at, or find us on Facebook and Twitter..Under a restricted application, however, you could take just one or the other of the two benefits at 66, and then allow the other benefit to grow at 8% per year, until age 70. For example, depending on how much your own retirement benefit would be, you might file a restricted application for your own retirement benefit, and then let your larger spouse benefit grow to the maximum, switching to it at age 70. Or, if by allowing your own retirement benefit to grow would yield a higher benefit, you could instead file a restricted application for just the ex- spouse benefit at 66, and then switch to your own higher benefit at age 70. You will need professional help to make this determination. The extra money you receive using this strategy accumulates over a typical retirement, and can mean a significantly higher benefit when you are older and need it the most..In their 2016 platform, Democrats committed to adopting a more fair and accurate Social Security cost-of-living adjustment, saying, "The Democratic Party recognizes that the way Social Security COLAs are calculated may not always reflect the spending patterns of seniors, particularly the disproportionate amount they spend on healthcare expenses." To cover the cost of providing a more accurate COLA and to increase the solvency of the trust funds, Democrats voted to support policies that would apply the payroll tax cap to income above 0,000 so that wealthier individuals pay the same Social Security tax rate as everyone else..Interest rates fell. Seven percent of Social Security financing comes from the interest earned by the assets held by the Social Security Trust Funds. Those assets are actually non-marketable government bonds, like I.O.U.s from the U.S. Treasury payable to the Social Security Trust Fund. That income stream was reduced because short term interest rates dropped to extreme lows during 2020 and so far in 2021.
