$ 1,400 stimulus check: Congress urged to consider it for some
$ 1,400 stimulus check: Congress urged to consider it for some

$ 1,400 stimulus check: Congress urged to consider it for some

2022 The Social Security cost of living adjustment may be the largest in decades, but it may not be enough to overcome inflation.

A nonprofit organization representing the interests of senior citizens urges Congress to approve $ 1,400 stimulus checks for Social Security recipients. While these Americans are looking at possibly the largest cost-of-living adjustment in 40 years, experts say the amount they will receive is unlikely to match inflation and could knock them into a higher tax framework.

That The Senior Citizens League (TSCL) said last month it expects the 2022 cost of living adjustment (COLA), which will be announced in October, to be 6% to 6.1% based on consumer price data through August. If the estimate of 6.1% holds when September is included, it would be the highest COLA for social security since 1982.

According to AARP, the estimated average monthly social security benefit in 2021 is $ 1,543. With a COLA increase of 6.1%, a person receiving this amount this year will see their monthly payment increase around $ 93 to $ 1,635 for 2022.

While the extra monthly money can definitely help, the site is investing The variegated fool points out that most or all of the increase is likely to be obliterated by the cost of inflation.

In a letter to members of Congress last week, league chairman Rick Delaney said the organization has heard from tens of thousands of seniors, “who have exhausted their retirement savings, who have started eating only one meal a day, have started cutting their pills in two , because they can not afford their prescription drugs “due to inflation.

TSCL is also concerned that the COLA bump could push some seniors into a higher tax framework, which could cause “higher tax rates on their income and supplements to their Medicare Part B premiums,” Delaney wrote.

The answer, the organization says, may be a one-time stimulus check.

“A $ 1,400.00 stimulus check for Social Security beneficiaries could be a way to get extra non-taxable income for them,” Delaney wrote.

The organization said it does not anticipate congressional action this year, but hopes to get enough support to pressure lawmakers on Capitol Hill.

Andrew Weil contributed to this report.

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