Latest news with #TSCL
Newsweek
3 days ago
- Business
- Newsweek
Social Security Benefits: Payment Worth Up to $5,108 Due 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. Another round of Social Security payments is scheduled to be made this week for beneficiaries across the country. Why It Matters The Social Security Administration pays retirement, disability and survivor benefits to more than 70 million Americans, forming a bedrock of income for those who are retired, disabled or the survivor of a deceased worker. Payments are administered on a monthly basis and paid in one lump sum for most recipients. Because of the large number of recipients, not every claimant receives their payment on the same date each month. Benefits Paid This Week On Tuesday, June 3, benefit payments are scheduled to be made to those who have been collecting checks since before May 1997 and those who also collect Supplemental Security Income benefits. Anyone who doesn't receive their payment on the expected date should allow three working days before contacting Social Security. Saturdays, Sundays and public holidays are not working days. A stock image of a Social Security card with U.S. dollars. A stock image of a Social Security card with U.S. dollars. GETTY How Much Is Social Security? The average Social Security retirement benefit is $1,976 per month as of January 2025, but the beneficiary's lifetime earnings and years spent paying Social Security taxes determine the actual amount. Up to $2,831 can be earned each month by retiring at age 62, and up to $4,018 can be earned by claiming at full retirement age, which is 67. The upper limit increases to $5,108 for those who wait until they are 70. Benefits increase in line with inflation every year thanks to the Cost of Living Adjustment (COLA). The definitive answer for how much benefits will rise next year is not set in stone and is expected to be officially announced in October. Based on current economic conditions, the Senior Citizens League (TSCL) forecasts the COLA for 2026 to be 2.4 percent, which is slightly lower than the 2.5 percent annual boost for benefits in 2025. It would also be the lowest annual increase since 2021. High inflation during the coronavirus pandemic led to considerably higher-than-average COLAs of 5.9 percent in 2022 and 8.7 percent in 2023. "If our predictions come true and the 2026 COLA comes in at the lowest we've seen since 2021, seniors will face additional pressure at a time when they're already strained financially," TSCL executive director Shannon Benton said last month in a prediction update. "Our research shows that 73 percent of American seniors rely on Social Security for at least half their income, with 39 percent depending on the program for all of their income." Further Payment Dates In June, benefits are scheduled to be paid on the following dates:
Yahoo
16-05-2025
- Business
- Yahoo
Social Security COLA increase in 2026 projected to be lowest in years, advocacy group says
(NEXSTAR) – The next cost-of-living adjustment (COLA) for Social Security recipients is projected to be even lower than 2025's increase of 2.5%, which was also the lowest COLA increase in years. The Senior Citizens League, a nonpartisan senior advocacy group, released its latest projection this week, estimating that the 2026 adjustment would amount to only a 2.4% increase. The increase was based on April data from the Labor Department concerning inflation and other pricing trends for consumer goods. Americans purchasing more older homes than ever before 'High inflation during the COVID-19 pandemic led to higher-than-average COLAs of 5.9 percent in 2022 and 8.7 percent in 2023. If TSCL's prediction for 2026 holds, seniors can expect next year's COLA to be the lowest since the 1.3 percent implemented in 2021,' TSCL wrote in its latest COLA update. The amount of next year's COLA increase, however, won't be officially announced by the Social Security Administration until October. The 2026 increase will also be based on Labor Department data from the upcoming third quarter (July, August and September) of 2025. The Social Security Administration's yearly cost-of-living adjustments are designed to help Social Security and Supplemental Security Income (SSI) recipients retain their buying power amid rising inflation. These increases, which are issued annually, are determined using the Bureau of Labor's CPI-W, which itself is a measure of the change in prices for common consumer goods and services. Even still, TSCL has argued that recent COLA increases have failed to keep up with rising costs for seniors, claiming that the CPI-W does not accurately reflect the spending habits of older adults. In TSCL's upcoming survey of nearly 2,000 Social Security beneficiaries, the organization says a fifth of respondents reported spending more than $1,000 on healthcare costs alone. Seniors have also indicated in previous years that their costs for food and housing were higher than their COLA increases accounted for. 'For many of these seniors, a COLA that doesn't keep pace with inflation means a drop in their living standards,' writes TSCL. Walmart raising prices due to tariff costs The group, meanwhile, did share support for President Donald Trump's executive order aimed at lowering prescription drug prices, which TSCL executive director Shannon Benton called 'a big step' towards ultimately easing costs for seniors. American taxpayers should not be paying more than the price charged in other countries for the same drugs, especially those made by American companies,' Benton said in a statement included with this week's COLA projection update. 'American taxpayers shouldn't have to subsidize the rest of the world's healthcare while our own seniors are struggling to get by.' Nearly 7.4 million Americans receive Social Security benefits or Supplemental Security Income (SSI) as of April 2025, according to the Social Security Administration. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Newsweek
13-05-2025
- Business
- Newsweek
Social Security COLA 2026 Increase Update as New Prediction Released
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. Social Security recipients are likely to see the smallest cost-of-living adjustment (COLA) in five years in 2026, with new forecasts pegging the increase at 2.4 percent. The estimate, released by The Senior Citizens League (TSCL), is slightly up from April's 2.3 percent forecast but remains below the 2.5 percent adjustment awarded for 2025. This early prediction arrives as inflation continues to cool from pandemic-era spikes and as new economic policies—including a recent executive order from President Donald Trump—raise questions about future consumer costs. Why It Matters COLA affects more than 70 million Americans who receive Social Security benefits. The latest projection of a 2.4 percent adjustment for 2026 would mark the lowest since 2021, when benefits rose just 1.3 percent. It follows several years of elevated increases as a result of high inflation, including 5.9 percent in 2022 and 8.7 percent in 2023. While the modest forecast reflects slowing inflation, it also signals tighter financial conditions ahead for retirees whose budgets are sensitive to even small changes in benefit growth. The U.S. Social Security Administration logo is shown at the agency's office in Burbank, California, on November 5, 2020. The U.S. Social Security Administration logo is shown at the agency's office in Burbank, California, on November 5, 2020. VALERIE MACON/AFP via Getty Images What To Know "This year will be a closer year to watch because of the tariffs," Mary Johnson, an independent Social Security and Medicare analyst, told CNBC. The Social Security COLA is determined by comparing third-quarter year-over-year changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If inflation remains low, the adjustment remains minimal. The CPI-W rose 2.1 percent over the 12 months ending in April 2025, according to the Bureau of Labor Statistics. Johnson and TSCL both project a 2.4 percent increase, though they caution that the number could shift with economic fluctuations. Prescription drug costs may also play a role in retirees' actual cost of living. On May 12, President Donald Trump signed an executive order directing pharmaceutical companies to match U.S. drug prices to those in other countries or face payment caps from the federal government. "Any efforts moving us in the direction of paying less ... is something that people could probably get behind," Leigh Purvis, of AARP's Public Policy Institute, said on CNBC. What People Are Saying Kevin Thompson, CEO of 9i Capital Group and host of the 9innings podcast, told Newsweek: "Cola will probably be insignificant given the fact grocery prices have risen so quickly. What many fail to understand about inflation, a 10 percent increase on prices followed by a much lower increase the following year is still an increase. Prices aren't coming down, just increasing more slowly." Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "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. 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." What Happens Next The official COLA for 2026 will be announced by the Social Security Administration in October 2025, based on inflation data through the third quarter. Analysts and advocacy groups will continue updating forecasts monthly. The Trump administration's prescription drug policy could trigger legal challenges and negotiation delays, while trade tariff developments may introduce additional volatility into consumer prices that ultimately influence the final COLA calculation. "The bigger likelihood from this COLA will come from those who 100 percent rely on Social Security," Thompson said. "It is a fact that prices are continually rising, and what you could buy for $100 at the grocery store just a few years ago is not the same amount today. There will be some cutbacks needed."
Newsweek
12-05-2025
- Business
- Newsweek
Social Security: 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. A new round of Social Security will be landing in bank accounts this week. Why It Matters The Social Security Administration (SSA) pays benefits to tens of millions of Americans, forming a bedrock of income for those who are retired, a survivor of a deceased worker or are disabled. Payments are made every month, and the majority of recipients get their money in one lump sum. But given that there are several types of benefits going out to 70 million payees, not every claimant receives their money at the same time. What To Know Retirement, survivor and spousal benefits, are distributed at different times, based on either the recipient's birth date or the length of time they've been receiving payments. This week, benefits will be paid out on Wednesday, May 14. This payment date applies to anyone born between the 1st and 10th of any given calendar month. Stock image/file photo: Social Security cards with U.S. dollars. Stock image/file photo: Social Security cards with U.S. dollars. GETTY How Much Is Social Security Can I Get? If you start collecting Social Security benefits at Full Retirement Age—currently 67—the maximum monthly payment is $4,018. Claiming benefits early at age 62 reduces that maximum to $2,831, while waiting until age 70 can increase it to as much as $5,108 per month. These amounts represent the highest possible payouts, but your actual benefit will depend on factors like your lifetime earnings and how long you've paid into Social Security. As of January 2025, the average monthly retirement benefit was $1,976. Benefits increase in line with inflation every year thanks to something known as the Cost of Living Adjustment, or COLA. The definitive answer for how much benefits will rise next year is not set in stone, and will be officially announced in October this year. The Senior Citizens League (TSCL) has forecast the COLA for 2026 will be 2.3 percent, which is based on current economic conditions. But President Donald Trump's widespread tariffs mean this prediction could change dramatically as the year continues, and could also have significant impacts on the finances of beneficiaries. "Placing broad-based tariffs on goods from numerous countries could have a profoundly negative impact on the daily lives of seniors, including the costs of drugs and medical equipment that many seniors rely on," TSCL executive director Shannon Benton said in a statement. "It is also highly likely that import taxes will keep food prices high, increase auto insurance costs, and contribute to higher inflation, among other effects." What Happens Next More payments are scheduled for later in the month:
Yahoo
27-04-2025
- Business
- Yahoo
Social Security COLA Forecast: Here's the Good and Bad News for Retirees
Believe it or not, retirees are less than six months away from finding out how much their Social Security benefits will increase next year. But you don't have to wait to learn what the annual cost-of-living adjustment (COLA) is expected to be. The Senior Citizens League (TSCL), a nonprofit organization that advocates for seniors, updates its Social Security COLA forecast each month. The organization's latest prediction is out -- and there's good news and bad news for retirees. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Let's start with the good news: Retirees can expect a Social Security benefits increase of 2.3% in 2026 based on TSCL's latest projection. That's lower than the 2.5% adjustments received in 2025. You might be wondering, "Why is a lower COLA good news instead of bad news?" To answer that question, we have to understand how the annual COLA is calculated. The Social Security Administration (SSA) uses an inflation metric called the Consumer Price Index for Urban Wage Earnings and Clerical Workers (CPI-W) to determine what the annual COLA will be. In particular, the agency measures the percentage increase (if any) between the average CPI-W for the third quarter of the current year and the average CPI-W for the third quarter of the previous year. One downside to using the CPI-W is that it doesn't always accurately reflect the price increases experienced by seniors. For example, the inflation metric doesn't weight healthcare costs as highly as they impact seniors' budgets. Another drawback to the annual Social Security COLA (regardless of which inflation metric is used) is its timing. Retirees don't receive a benefits increase until after they've paid higher prices for products and services. Because of these issues, the ideal COLA would be 0%. This would mean that retirees wouldn't be at risk of losing any buying power with their Social Security benefits due to inflation. Now for the bad news: The actual Social Security COLA will likely be higher than TSCL's latest forecast of 2.3%. There's a simple explanation why. As you might expect, the CPI-W is one of the key indicators TSCL uses in its model to project the next COLA. However, the most recent CPI-W figure available was for March. This number didn't include the full impact of tariffs implemented by the Trump administration. The effects of those tariffs will likely start to be reflected in the CPI-W metric beginning in April. TSCL Executive Director Shannon Benton said in a press release, "Along with most economists, TSCL expects the new tariffs to lead to higher inflation. Our COLA model will likely reflect that in coming months as the CPI-W and other economic indicators respond to the new import tax policies." Benton expressed concern about the impact of tariffs on seniors. She said, "Placing broad-based tariffs on goods from numerous countries could have a profoundly negative impact on the daily lives of seniors, including the costs of drugs and medical equipment that many seniors rely on." Benton added, "It is also highly likely that import taxes will keep food prices high, increase auto insurance costs, and contribute to higher inflation, among other effects." If tariffs do cause inflation to surge, the next Social Security COLA will also be higher than currently projected. However, as explained earlier, a higher COLA isn't good news for retirees. To make matters worse, higher-than-expected inflation and COLAs could cause the Social Security trust funds to run out of money more quickly than projected. The Social Security Trustees currently predict that the trust funds will be depleted in 2035. However, that timeline could be overly optimistic if the inflation assumptions used in the forecast are too low. Unless significant reforms are made to Social Security, retirees could be faced with steep benefit cuts. I don't want to end on such a negative note, though. There is some more good news, too. Retirees in the U.S. have a lot of political power. Few, if any, politicians in Washington, D.C., will want to anger so many of their constituents by allowing major Social Security benefit cuts to happen. Regardless of what next year's COLA is, the chances that Congress and the president will take action before Social Security's trust funds run out of money should be high. If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known could help ensure a boost in your retirement income. One easy trick could pay you as much as $22,924 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these Motley Fool has a disclosure policy. Social Security COLA Forecast: Here's the Good and Bad News for Retirees was originally published by The Motley Fool
