Social Security Changes | Biden's Plan for Social Security | $200 Per Month Increase? | COLA Changes
Published at : 28 Jan 2021
#1 Increase Minimum SS for Anyone that Worked for 30 years or More
This proposal would increase the minimum benefit to 125% of the federal poverty line for anyone that worked for 30 years or more.
#2 Change how the COLA is calculated
Biden's proposal would tie the Cost of Living Adjustment to the CPI-E, which is the Consumer Price Index for the Elderly, which would more closely match the increased costs that seniors face year after year.
The COLA for 2021 was a measly 1.3%, which was swallowed up by increases to Medicare payments for many, but under Biden's plan it would have been 1.5% (which does not sound that much better).
#3 An Emergency $200 Per month increase to SS
One of the most popular items that Biden presented on the campaign trail was this $200 per month increase across the board for Social Security beneficiaries.
#4 Higher Benefit after 20 Years
A part of Biden's plan for Social Security overhaul would attempt to resolve this problem by increasing Social Security benefits by 5% after 20 years.
This plan would phase in after 16 years of Social Security benefits, with a 1% increase in benefits that year and each following year so that by year 20, it would be a total of 5% increase from the previous amounts.
#5 Start Taxing Income Over $400,000
Any income over $400,000 per year would be subject to Social Security taxes of 6.2% for individuals and 12.4% combined for the employee and the employer or 12.4% for those self-employed individuals.
Any income between $142,800 and $400,000 per year would continue to not be taxed.
This would extend the solvency of the Social Security program for an additional 6 years, but would raise Social Security taxes by billions of dollars on a few individuals.
#6 Higher Benefits for Surviving Spouses
As of now, surviving spouses are eligible for 100% of the deceased spouse's benefit if it is larger than their own.
However, many people face the reality that when their spouse passes away their total Social Security benefits will be cut in half.
This is a reality for those couple where both spouses made similar amounts from Social Security.
Biden's plan would give survivors the option of receiving 75% of the benefit from before their spouse passed away.
When a spouse dies, the expenses for the widow or widower are rarely reduced to 50% of the previous expenses, so this plan would help those survivors with housing, food, and medical costs.
#socialsecuritychanges #socialsecuritychanges2021 #socialsecuritycola
This description contains affiliate links, which if used, can pay me a small amount when you purchase products from these affiliates at no extra cost to you.
blind to billionaireblind billionairessi