Latest news with #MaryJohnson
Newsweek
19-05-2025
- Business
- Newsweek
Social Security Benefits: Payments of Up to $5,108 Going Out This Week
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Millions of Americans will be receiving their monthly Social Security payment this week, with some receiving a little over $5,000. Why It Matters The Social Security Administration (SSA) pays out retirement, survivor and disability benefits to more than 70 million Americans every month. Benefit Payments This Week Retirement, spousal and survivor checks are distributed throughout the month, usually dependent on when you are born and whether you collect any other payments like Supplemental Security Income (SSI). This week, retirement, survivor and spousal benefits will be paid out on Wednesday, May 21, to those born between the 11th and 20th of any month. This does not include any beneficiaries who also claim SSI who were paid earlier this month. The SSA advises waiting three working days before contacting the agency if an expected payment has not arrived as scheduled. How Much Is Social Security? As of January 2025, the average monthly Social Security retirement benefit is $1,976. Maximum benefits depend on when you begin collecting. Retiring at age 62 yields up to $2,831 per month, while claiming at full retirement age (67) can bring in up to $4,018. If you wait until age 70, the maximum rises to $5,108. Actual benefit amounts vary based on your lifetime earnings and how much Social Security taxes you've paid. For SSI, the maximum monthly benefit in 2025 is $967 for individuals and $1,450 for couples. However, your actual payment may be lower depending on your income, living arrangements, and other eligibility factors. 2026 COLA Every year, the amount of Social Security benefits a person can receive can rise due to the cost-of-living adjustment, or COLA, which raises payments in line with inflation to help keep up with rising prices. For 2025, benefits were raised by 2.5 percent. The Senior Citizens League (TSCL) and independent Social Security and Medicare policy analyst Mary Johnson have both forecast that benefits will rise by 2.4 percent for 2026, slightly lower than 2025. "While a COLA decrease may be viewed by some retirees as a bad thing, it's actually a good one for the overall future economic outlook," Alex Beene, financial literacy instructor for the University of Tennessee at Martin, previously told Newsweek. "The stabilization of COLA indicates that the pricing pressures of inflation are finally starting to [subside]. While seniors are undoubtedly still having to do more dollar counting than a few years ago, not having to dramatically increase beneficiary spending shows prices are stabilizing, even if they're still higher than they were five years ago." The official COLA for 2026 will be announced by the SSA in October 2025. Upcoming Payment Dates If you're still waiting for your monthly check, the SSA will make further payments on the following dates this month: Wednesday, May 28 : Benefits for those with birthdays between the 21st and 31st. : Benefits for those with birthdays between the 21st and 31st. Friday, May 30: SSI payments for June. This payment will come slightly earlier than usual, as the regular payment date falls on a weekend.
Yahoo
14-05-2025
- Business
- Yahoo
2026 Social Security COLA estimated at 2.4% after latest inflation report
Social Security checks could increase by 2.4% next year based on Tuesday's consumer inflation report, according to estimates by an independent analyst. Overall consumer prices increased 2.3% from a year earlier, down from 2.4% rise the previous month and the smallest annual increase since February 2021, according to the Labor Department's consumer price index, a measure of average changes in goods and services costs. The so-called CPI-W subset of the consumer price report that's used to determine Social Security's cost-of-living increase rose 2.1%, down from March's 2.2% increase. The official 2026 COLA will not be determined until October because it depends on inflation data from the third quarter, which is collected between July and September. But analysts often track the estimates in the months leading up to the crucial July through September timeframe. A 2.4% COLA would be the smallest increase since 2020 and raise the average retiree benefit in April of $1,999.97 per month by about $48. In January, the average beneficiary received a 2.5% increase, which amounted to a $50 raise to $1,957, up from $1,907 in January 2024. While the estimated 2.4% COLA increase is higher than last month's forecast for 2.2%, it still may underestimate the final 2026 COLA, said Mary Johnson, independent Social Security and Medicare policy analyst. "Trump Administration tariffs are only beginning to have an impact raising consumer prices," she said. Though some of the highest of President Donald Trump's tariffs have been lowered or paused for now, economists still believe the ones in place will be enough to increase inflation soon. The "de-escalation with China provided some near-term relief. But the reality remains that we will still likely see inflation peaking at 3% later this year and there remains significant uncertainty around what U.S. trade policy will look like beyond the next 90 days," said Mike Reid, senior U.S. economist at Royal Bank of Canada. On Monday, China and the U.S. said they would pause their reciprocal tariffs for 90 days. Effective from Wednesday, the U.S. will temporarily reduce tariffs on China to 30%, down from 145%, and China will reduce tariffs on U.S. goods to 10%, down from 125%. COLA should rise in line with any inflation increases. The Social Security Administration bases its COLA each year on average annual increases in the consumer price index for urban wage earners and clerical workers (CPI-W) from July through September. CPI-W is a subset of the overall consumer inflation index that looks at the price inflation experienced by working adults younger than 62, Johnson said. The problem with that is younger working consumers spend their money differently than older people covered by Medicare. For example, economists estimate younger workers spend about 7% of their budget on healthcare costs, but research and surveys have indicated that older adults tend to spend on average 15% or more of their incomes on healthcare, she said. As a result, COLA often seems insufficient to keep up with rising costs, Johnson said. However, this year, Johnson noted that prescription drug prices have not been growing quite as fast as in past years. Prescription drug prices rose 2.3% through April from one year ago, as measured by the Bureau of Labor Statistics. In 2023, prescription drug prices increased by 3.3% from December 2022 to December 2023 before slowing down last year. Since 2023, the Inflation Reduction Act requires drug companies to pay Medicare rebates if drug prices rise faster than inflation. 'That provision, which was widely supported by Medicare beneficiaries, could be restraining runaway drug prices,' she said. Trump signed an executive order on Monday encouraging linking the cost of prescription drugs to what's paid in other nations where drug prices are negotiated by their government and tend to be much lower. The proposal is widely supported by older Americans, but it's unclear if Trump's order would lower costs, Johnson said. 'An executive order, however, is not the same thing as a law change giving Medicare the authority to use these prices in negotiations with drug companies,' Johnson noted. Courts also blocked a similar plan during Trump's first presidency. Instead, the executive order appears to encourage direct-to-consumer sales using the most favored nation pricing, which suggests it could apply to transactions outside of Medicare coverage, she said. The executive order also mentions waivers to allow for importing prescriptions from other countries where prices may be lower. 'If that doesn't muddy the waters enough, one has to wonder what effect tariffs would have on the final drug prices,' she said. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday. This article originally appeared on USA TODAY: 2026 Social Security COLA estimate up after April inflation report Sign in to access your portfolio
CNBC
13-05-2025
- Business
- CNBC
Social Security cost-of-living adjustment for 2026 is projected to be lowest in recent years. Why that may change
The Social Security cost-of-living adjustment for 2026 is on pace to be the lowest annual benefit increase in five years, according to new estimates. But that may change depending on the pace of inflation in the coming months. The 2026 COLA may be 2.4% in 2026, according to new projections from both Mary Johnson, an independent Social Security and Medicare policy analyst, and The Senior Citizens League, a non-partisan senior group. If that increase goes into effect next year, it would be lower than the 2.5% boost to benefits Social Security beneficiaries saw in 2025. It would also be the lowest cost-of-living adjustment since 2021, when a 1.3% increase went into effect. More from Personal Finance:Here's the inflation breakdown for April 2025 — in one chartWays to save on groceries amid food price inflation How to land a new job in a 'low firing, low hiring' market The Social Security COLA provides an annual inflation adjustment to all of the program's beneficiaries, including retirees, disabled individuals and family members. The annual adjustment for the next year is calculated by comparing third quarter inflation data for the current year to the previous year. The year-over-year difference determines the annual increase. However, if there is no increase in the the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, from year to year, the COLA may be zero. The CPI-W, used to calculate Social Security's COLA, increased by 2.1% over the past 12 months, according to data released Tuesday by the Bureau of Labor Statistics. In the months ahead, two factors may affect retirees' cost of living, experts say. Inflation, as measured by the broader Consumer Price Index, sank to its lowest 12-month rate at 2.3% in April since 2021. Yet tariffs may push the inflation rate higher in the months ahead, if those taxes imposed on imported goods go into effect. Tariffs would prompt higher consumer prices and inflation. If that happens in the months ahead, the Social Security cost-of-living adjustment estimate for 2026 may move higher. "This year will be a closer year to watch because of the tariffs," Johnson said of the 2026 COLA estimate, which is recalculated every month with new inflation data. The official COLA for the following year is typically announced by the Social Security Administration in October. President Donald Trump on May 12 issued an executive order taking aim at high prescription drug costs in the U.S. The White House hopes to bring those prices in line with other countries. The policy would apply to Medicare and Medicaid, in addition to the commercial market, according to the White House. Changing drug prices would be unlikely to impact the COLA estimate, according to Johnson. But retirees would see an impact to the personal budgets if drug prices came down, she said. Many details of the executive order still need to be fleshed out, noted Leigh Purvis, prescription drug policy principal at AARP Public Policy Institute. Yet the nonprofit organization, which represents Americans ages 50 and up, praised the Trump administration's efforts to curb big drug companies' ability to charge retirees high prices for necessary prescriptions. "A lot of people are aware that prescription drug prices are too high, and I think a lot of people are aware that we're paying a lot more than other countries," Purvis said. "So any efforts moving us in the direction of paying less and paying something that's more comparable to the rest of the world, I think is something that people could probably get behind," she said.
USA Today
13-05-2025
- Business
- USA Today
2026 Social Security COLA estimated at 2.4% after latest inflation report
2026 Social Security COLA estimated at 2.4% after latest inflation report Show Caption Hide Caption Social Security checks increasing in 2025 The Cost of Living Adjustment is rising in 2025, which will change the amount of money people will receive in their Social Security checks. Fox - 10 Phoenix Social Security checks could increase by 2.4% next year based on Tuesday's consumer inflation report, according to estimates by an independent analyst. Overall consumer prices increased 2.3% from a year earlier, down from 2.4% rise the previous month and the smallest annual increase since February 2021, according to the Labor Department's consumer price index, a measure of average changes in goods and services costs. The so-called CPI-W subset of the consumer price report that's used to determine Social Security's cost-of-living increase rose 2.1%, down from March's 2.2% increase. The official 2026 COLA will not be determined until October because it depends on inflation data from the third quarter, which is collected between July and September. But analysts often track the estimates in the months leading up to the crucial July through September timeframe. A 2.4% COLA would be the smallest increase since 2020 and raise the average retiree benefit in April of $1,999.97 per month by about $48. In January, the average beneficiary received a 2.5% increase, which amounted to a $50 raise to $1,957, up from $1,907 in January 2024. While the estimated 2.4% COLA increase is higher than last month's forecast for 2.2%, it still may underestimate the final 2026 COLA, said Mary Johnson, independent Social Security and Medicare policy analyst. "Trump Administration tariffs are only beginning to have an impact raising consumer prices," she said. How could Trump's tariffs affect the COLA? Though some of the highest of President Donald Trump's tariffs have been lowered or paused for now, economists still believe the ones in place will be enough to increase inflation soon. The "de-escalation with China provided some near-term relief. But the reality remains that we will still likely see inflation peaking at 3% later this year and there remains significant uncertainty around what U.S. trade policy will look like beyond the next 90 days," said Mike Reid, senior U.S. economist at Royal Bank of Canada. On Monday, China and the U.S. said they would pause their reciprocal tariffs for 90 days. Effective from Wednesday, the U.S. will temporarily reduce tariffs on China to 30%, down from 145%, and China will reduce tariffs on U.S. goods to 10%, down from 125%. COLA should rise in line with any inflation increases. What is CPI-W? The Social Security Administration bases its COLA each year on average annual increases in the consumer price index for urban wage earners and clerical workers (CPI-W) from July through September. CPI-W is a subset of the overall consumer inflation index that looks at the price inflation experienced by working adults younger than 62, Johnson said. The problem with that is younger working consumers spend their money differently than older people covered by Medicare. For example, economists estimate younger workers spend about 7% of their budget on healthcare costs, but research and surveys have indicated that older adults tend to spend on average 15% or more of their incomes on healthcare, she said. As a result, COLA often seems insufficient to keep up with rising costs, Johnson said. However, this year, Johnson noted that prescription drug prices have not been growing quite as fast as in past years. Prescription drug prices rose 2.3% through April from one year ago, as measured by the Bureau of Labor Statistics. In 2023, prescription drug prices increased by 3.3% from December 2022 to December 2023 before slowing down last year. Since 2023, the Inflation Reduction Act requires drug companies to pay Medicare rebates if drug prices rise faster than inflation. 'That provision, which was widely supported by Medicare beneficiaries, could be restraining runaway drug prices,' she said. Can Trump further rein in prescription drug prices? Trump signed an executive order on Monday encouraging linking the cost of prescription drugs to what's paid in other nations where drug prices are negotiated by their government and tend to be much lower. The proposal is widely supported by older Americans, but it's unclear if Trump's order would lower costs, Johnson said. 'An executive order, however, is not the same thing as a law change giving Medicare the authority to use these prices in negotiations with drug companies,' Johnson noted. Courts also blocked a similar plan during Trump's first presidency. Instead, the executive order appears to encourage direct-to-consumer sales using the most favored nation pricing, which suggests it could apply to transactions outside of Medicare coverage, she said. The executive order also mentions waivers to allow for importing prescriptions from other countries where prices may be lower. 'If that doesn't muddy the waters enough, one has to wonder what effect tariffs would have on the final drug prices,' she said. Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@ and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
Yahoo
12-04-2025
- Business
- Yahoo
Social Security myths on social media: How they could hurt you when paper checks end
Unfortunately, we live in a time where oddball financial advice crops up on social media — as a way to cope, perhaps, with all sorts of anxiety. And unfortunately, again, some people could get hurt by following bad advice relating to many things, including Social Security. A friend on Facebook recently shared a tip that didn't sound quite right to me. "Folks, the federal workers began advising last month that all Americans remove all funds from the account where they normally receive any federal payments (Social Security, federal tax refunds and the like). Keep the account but only use it as a place for feds to transfer money. Immediately move all transferred cash to a separate account." The concern, according to the post: "DOGE can declare you dead and force your bank to send back any funds paid to you." The Department of Government Efficiency has fueled a sense of doom for many when it comes to Social Security payments, as the Elon Musk-led group develops aggressive strategies to cut costs in federal government agencies. But making a quick move with your Social Security money — or listening to a scammer who calls out of the blue — isn't the right thing to do here. Retirement planning: $1.5m is a retirement 'magic number.' Here's how long it lasts in every state. The post I found on Facebook isn't a savvy insider banking tip that you should follow if you're anxious about the possibility that something could go haywire at the Social Security Administration. In fact, it could be exactly the wrong move for many people to make right now. "A knee jerk reaction could just make things worse," warns Mary Johnson, an independent Social Security and Medicare policy analyst. Retirees don't want to start keeping a lot of cash on hand, of course, because they fear that their Social Security money will be seized by the federal government. Keeping too much cash on hand only makes you a mark for getting robbed at home or on the street. And there are very good reasons why you want to keep Social Security benefits in the account where it's directly deposited each month. For example, Johnson noted, Social Security accounts enjoy special protections under law. If someone followed that advice on Facebook and transferred their Social Security benefits into a different consumer account, she said, "they might open themselves up to weaker consumer protections, scam and worse." Social Security payments are specially coded when sent to the consumer's account, according to banking experts, so your bank can identify and protect those benefits from certain types of garnishment. But there's no such code when the money is transferred from the account that received the government benefits into another account. It's a key point to understand if you could be dealing with debt collectors. Before a debt collector can take money that you receive through Social Security or benefits from the U.S. Department of Veterans Affairs, the debt collector must sue you and win a judgment against you for the amount you owe, according Consumer Financial Protection Bureau online tutorial. "Then, the debt collector must get a court order that tells your bank or credit union to turn over money from your account or prepaid card," according to the CFPB. Even then, though, some of your Social Security money could be protected in this process. Banks will receive a garnishment court order, and then conduct a 'lookback' to see whether federal benefits have been deposited into the account within the past 60 days. "When your bank receives a court order to garnish money in your account," the CFPB notes, "your bank must look at your account history to see if you received federal benefits by direct deposit in the last two months. Two months' worth of benefits are protected and remain in your account for you to use." The 'protected amount' equals the sum of federal payments received over the last 60 days or the amount protected under state law, whichever is higher, and it will not be garnished, according to the CFPB. The amount of money in the account that exceeds the protected benefit would be released to the creditor. And yes, there are exceptions. Social Security payments, excluding Supplemental Security Income, can be garnished to enforce child support or alimony orders. Social Security benefits can be garnished to enforce restitution to victims of certain crimes. In many cases, taxpayers who have delinquent federal income tax debt could see the Internal Revenue Service take up to 15% of their benefits each month to cover the tax debt, which would include interest and penalties. But that does not apply to SSA Disability Insurance Benefits. The federal payment levy program involving taxes excludes certain delinquent taxpayers who receive Social Security payments if their income falls at or below certain established levels, based on the Department of Health and Human Services poverty guidelines. Lump sum death benefits and benefits paid to children are not included in the levy program. The Social Security Administration has information about direct deposit on its website. See for information. All federal benefit payments ― including Social Security and Supplemental Security Income benefits ― must be made electronically, based on federal law, according to information online at the Social Security Administration. Two ways exist for receiving Social Security benefits, according to Social Security, if you're signing up now: You can have the money directly deposited into an existing bank account or have it deposited onto a Direct Express Debit Mastercard. Social Security payments: Did you receive a letter about Social Security overpayments? Here's what it means The Social Security Administration website noted on March 31: "If you currently receive Social Security or Supplemental Security Income benefits by check, you must switch to an electronic payment option listed above." If you're already receiving a paper check, Social Security offers a variety of ways to switch to direct deposit. One option is to call the Social Security Administration at 800-772-1213. More than 455,000 people continue to receive Social Security checks in the mail based on data from Social Security. President Donald Trump signed an executive order March 25 to get the federal government out of the business of issuing paper checks to the extent permitted by law as of Sept. 30. That includes tax refunds. The goal is to use direct deposit, payments onto debit and credit cards, digital wallets, and other electronic payment options. According to the order, the Treasury Department could still issue checks when an electronic option isn't feasible, such as to "individuals who do not have access to banking services or electronic payment systems." Many people remain rightly concerned about a small group of Social Security beneficiaries who might face anxiety or difficulty switching to direct deposit. Some might face issues, Johnson said, if they're not informed well in advance that they must set up electronic accounts. Public awareness will need to build when it comes to the Sept. 30 phaseout of paper checks. Or some, Johnson said, might face difficulty getting issues resolved if they don't have easy electronic access, either through cellphones or the internet. Some seniors have cognitive issues, she said, that make it difficult to drive and handle other tasks, such as online banking. In general, I've long favored using direct deposit, instead of opting for a paper check, to eliminate the risk of someone stealing your paper check. The risk of fraud and lost payments should be a significant concern for those receiving any kind of payment by paper check. The threat of someone stealing your tax refund check or Social Security check out of a mailbox is a huge concern. "Historically," according to Trump's executive order, "Department of the Treasury checks are 16 times more likely to be reported lost or stolen, returned undeliverable, or altered than an electronic funds transfer (EFT)." Granted, I'd say we cannot ignore that we have a long list of scammers who will trick you out of money that's in your bank account. But it's time for more protections for consumers from such schemes. Many people don't realize, though, that depositing a paper Social Security check into a bank account won't protect you in cases of debt collection and garnishment. "If you receive Social Security or VA benefits by check and then deposit the check into your bank account, the bank does not have to protect two months' worth of benefits in the account," according to the CFPB information online. "This means that your entire account balance could be frozen and you'll need to go to court to prove that it comes from protected federal benefits and should not be garnished." Using direct deposit for Social Security benefits — and not shifting it around to hide in other accounts — in general will provide additional legal protections, according to regulators and banking experts. No doubt, many seniors are getting uneasy feelings relating to their Social Security payments. But those feelings aren't a reason to panic or follow every tip you spot on Facebook. Contact personal finance columnist Susan Tompor: stompor@ Follow her on X @tompor. This article originally appeared on Detroit Free Press: Social Security myths: Stay safe when paper checks end on September 30 Sign in to access your portfolio
