To most citizens, Social Security is a valuable source of income that helps them survive in their retirement age or in the event of disability. However, inflation rates and doubts over the future of the Social Security system affect millions of people and make them doubt if they will receive enough money to live on. Perhaps you have asked yourself if things will ever change for the better and the good news is that they will.
Recent Developments in Social Security
Lately, there has been increasing concern over the future of Social Security as a viable program. Due to the increasing number of seniors and the number of recipients, many have questioned the sustainability of the program in the future. In response, the government has come up with new measures to enhance the solvency of the system while at the same time increasing the benefits to those who really need them.
Among the most recent changes, there is the change of the Cost of Living Adjustments (COLA). COLA is important to Social Security payments because it provides annual cost-of-living adjustments to benefits. Previously, COLA increases have been modest, and this has left beneficiaries struggling with the increased costs. The new measure seeks to enhance these adjustments and this will directly raise the monthly benefits for the beneficiaries.
Another important provision relates to the limitation on the amount of taxable earnings for Social Security benefits. Earlier, there was a cap on the income that is eligible for Social Security taxes; in other words, the income of the higher earners was taxed only up to a certain level. The new measure increases this cap to make sure that the high income earners put more into the system. This change contributes to the growth of Social Security trust fund and enables the provision of broader benefits for a longer time.
Expanded Eligibility for Benefits
Besides the financial changes, with these measures more can apply for Social Security benefits. Traditionally, the eligibility was very rigid and the benefits were only extended to those who acquired sufficient “work credits” throughout their employment.
However the new measure expands coverage to more part-time employees and individuals who lost work due to caring for family members or being ill. This expansion will allow more people, particularly women and low-wage workers, to be eligible for benefits that they might have otherwise not been able to receive.
This is especially useful for those who may not have had a typical employment history, like, stay-at-home mothers or caregivers. These individuals also work hard for the society but they sometimes encounter challenges in getting proper financial support during their retirement years. With the expansion, they now have a higher probability of getting the support they need.
The new Social Security measure is a step in the right direction for millions of Americans. With COLA adjustment, new ways of increasing the monthly payment, eligibility to cover more workers, and disability benefits flexibility, those updates meet many of the concerns people have had for a long time. Of course, there may be more to do in the future but this is a positive move towards a better Social Security system.
How does the new COLA adjustment work and who qualifies under the expanded eligibility?
The new COLA increases the percentage to adjust benefits annually, ensuring beneficiaries do not fall behind in inflation.
Self-employed, part time workers, caregivers and people with intermittent work records because of sickness or to take care of their families now have higher chances of getting Social Security benefits.
