- 11:01 ET, Mar 28 2022
- Updated: 11:01 ET, Mar 28 2022
THE next batch of COLA checks is set to hit bank accounts in the coming days.
Throughout the year, Social Security checks are being sent on the second, third, and fourth Wednesdays for people whose birthdays fall at the beginning, middle, and end of the month respectively.
The COLA hike means a retired worker will now see, on average, their monthly check increase from $1,565 to $1,657 a month.
Meanwhile, a typical couple’s benefits will rise by $154 – from $2,599 to $2,753 per month.
Disabled Americans will also see their Social Security Disability Insurance (SSDI) rise by 5.9 percent.
And the maximum benefit in 2022 has jumped to $4,194 a month for some Americans.
Read our COLA 2022 increase live blog for the latest news and updates…
SS checks won’t be taxed in 37 states, continued
The checks won’t be taxed in these states, either:
- New Hampshire
- New Jersey
- New York
- North Carolina
- South Carolina
- Washington DC
SS checks won’t be taxed in 37 states
Retirees in certain states will not be taxed on their $1,657 Social Security checks.
Social Security recipients are getting larger checks this year thanks due to the new cost-of-living adjustment (COLA).
Several folks living in the following states will not be taxed when they receive their SS payment:
- South Dakota
Claimants’ frustrations, continued
Some Americans have taken to Twitter to say that they are struggling to cover costs despite the COLA increase.
One person said: “Ya, I got a whole $30 raise that will help with the cost of everything rising lol.”
Another said: “My Social Security only went up $52 that doesn’t even help me pay for my gas bill.”
My Social Security only went up $52 that doesn’t even help me pay for my gas bill
— Ally mono (@mono_ally) January 5, 2022
Why are some claimants frustrated?
The 5.9percent increase is not all it’s cracked up to be.
The increase in Social Security benefits is meant for retirees to continue to have some purchasing power in 2022.
The new year has come along with an increase in inflation, pushing up the cost of things like healthcare, food, and living expenses.
Why does Social Security tend to not go far?
The maximum benefit is $3,345 a month for someone who files for Social Security in 2022 at full retirement age (FRA).
FRA is the age at which you qualify for 100 percent of the benefit calculated from your earnings history.
This is $40,140 annually. However, the average rent in the United States is about $1,100 to $1,200.
This leaves a retiree with $25,740 annually, which is just above the poverty line.
When you plan for retirement, it’s important to remember that Social Security is only meant to cover about 40 percent of pre-retirement income.
What is delayed retirement credit, part two
You can begin to receive Social Security retirement benefits as early as age 62, but it will reduce your benefits by as much as 30 percent below what you would get if you waited to retire until your full retirement age.
If you wait until your full retirement age (66 for most people), you will be able to obtain your full benefits.
What is delayed retirement credit?
If you wait until age 70 to start achieving your benefits, the Social Security Administration will increase your benefit, since you gained delayed retirement credits.
The retirement benefits are then paid out until you die.
The age you begin receiving your retirement benefit affects how much your monthly benefits will be.
COLA could affect SNAP benefits, part two
The COLA increase can have an effect on people who are part of the supplemental nutrition assistance program (SNAP).
The program helps low-income people.
Households need to meet certain income requirements to receive assistance.
Americans on Social Security, who also receive SNAP benefits, may be at risk of losing the SNAP benefit if their income level exceeds the requirement.
COLA could affect SNAP benefits
Millions of Social Security beneficiaries are in line to get a larger payment in 2022.
The Social Security Administration (SSA) increased its cost-of-living adjustment (COLA) to 5.9 percent.
The increased Social Security payment was reflected in the January 2022 check.
The extra money will be welcomed by Social Security beneficiaries as the latest report from the Commerce Department found consumer prices rose 6.1 percent through January 2022.
What was the 2021 COLA?
The 5.9 percent cost-of-living adjustment (COLA) for 2022 is a big jump from the 1.3 percent COLA in 2021.
The significant increase was driven by a rise in inflation over the past year.
When was the COLA increase announced?
The Social Security Administration revealed on October 13, 2021, that the cost-of-living adjustment would be 5.9 percent.
COLAs have been modest until this year, according to AARP, averaging a 1.65 percent increase annually over the past decade.
Seniors demanding payments, continued
But that is causing concern for a number of senior citizens, Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League told CNBC.
They are worried as a result they could face higher costs in other areas -especially if the income boost pushes them into a higher tax bracket.
A non-taxable stimulus check would help alleviate those fears, petitioners say.
Johnson said some of the group’s members have been forced to eat one meal a day or cut back on their prescription drugs.
Seniors are demanding more payments
A group of senior citizens has demanded to be sent new $1,400 stimulus checks, citing a rise in their cost of living.
The Senior Citizens League wrote to its supporters detailing their plans for a petition for the extra cash payments for retired Americans.
That came after estimates predicted a boost of 6.2 percent to the cost-of-living adjustment (COLA).
An increase of that size would mark the biggest surge in monthly payouts since 1983.
March Social Security $1,657 checks
Payments for Social Security recipients began the first week of March 2022, with the rise announced at the start of this year, so those who satisfy the requirements will be among the first to get the $1,657 payment.
The first set of payments arrived in the first week of March, on the second Wednesday of the month, with Social Security and Supplemental Security Income claimants having received their checks on March 9.
Those born between the 11th and the 20th of the month received their checks on March 16, while those born between the 20th and the 31st of the month got their checks on March 23.
SSI back pay, continued
In general, it takes three to five months to get approval, according to the SSA, meaning most applicants can get back pay.
Back payments are different than retroactive payments.
Retroactive payments cover the months before your application date and are not offered for SSI.
What is SSI back pay?
Getting approval for SSI can take months.
In some cases, you may qualify for payments for the period of time between your application date and the date you were approved.
If your initial application was denied, and you appealed and were approved, you may have even more incentive to apply for back pay.