$409 extra per month for Social Security beneficiaries with a new report that was just released. I have all the details and what you need to know right here in the topic, so let’s get right into it. Alright? A new report was recently released specifically really focused on Social Security benefits and it’s also talking about an average of $409 more per month for Social Security beneficiaries, which also translates into $4,908 throughout the course of the entire year. So I want to get into it and discuss all the details of this report and what this extra $409 actually means for Social Security beneficiaries.
Stay connected from this site, so I can keep you updated each and every day with all of this new information as it continues to hit the wire. Especially as it pertains to money benefits and New bills. New pieces of legislation. Reform to these very important programs like Social Security Retirement SSDI, Survivors SSI, VA, and RRB. As well as money benefits programs and so much more that is going on right here. Right now with all of these announcements and things that continue to hit the wire each and every day.
All right, thanks again. Let’s jump into it and discuss the details of this report and how Social Security beneficiaries should be getting an extra $409 per month on average, which would be just under $5,000 per year more. Let me ask you that much before we get into this What would an extra $409 more every single month do for your life right now? Or how about this, an extra $4,900 throughout the course of the entire year. I think that’s a no brainer. I think we can all probably agree that would be life-changing for a lot of people. We’re talking about some serious money here, right?
We’re not talking about $50, we’re not talking about $200. We are talking about nearly $5,000 throughout the course of the entire year, right? For a lot of people, that’s about half of what everybody receives on an ongoing annualized basis, right? That’s a lot. We’re talking about a lot of money here.
So anyway, let’s get into it and discuss this report, what they’re actually bringing to our attention here with this information that’s being dug up right now and what is actually going on with Social Security benefits and some of the changes that should be taking place and ultimately should have taken place years and years ago. All right, so there are a lot of moving parts behind this, but let me talk you through some of the numbers that were expressed in this report because I think it’s a little bit interesting to go through all this information. So as of right now, there are about 70 million beneficiaries that receive Social Security benefits. And again, that’s across the board on retirement, SSDI survivors, and including SSI, about 70 million beneficiaries. Again, give or take a couple of million.
But it’s right around 70 million beneficiaries. It’s a lot of people, right? And again, here’s what the report is showing, that 89% of people that responded to a recent survey who received fixed income benefits rely on their monthly benefits for either all or the vast majority of their monthly income. 89% of people that responded to this report. That’s, again, a lot of people that rely on these monthly benefits for virtually all of their income.
Right. So again, you can see here this is a very important program and how these benefits are so incredibly important every single month as they go out. In fact, I know that a lot of you right here in this community probably are in this situation because I’ve seen your comments down below saying I get SSDI or I get retirement or I get SSI and this is my only income. I don’t know what I would do if I didn’t get my benefit. Yeah, exactly.
That’s the case for a lot of people right now, which, by the way, please do not leave your benefit amount down below. That’s not my business. And realistically, it’s nobody else’s business either. I just want to say that much. But again, I can’t tell you what to do or what to write down below.
I’m just simply saying you don’t need to leave that down below. It’s nobody’s business. But anyway, let’s talk about more details of this report here. Here’s what it also shows. On an annualized basis, 21.7 million people are either lifted out of poverty or prevented from falling into poverty from Social Security benefits.
Of those 21.7 million people, 14.8 million of them are Social Security retiree beneficiaries who are either lifted out of poverty and or prevented from falling into poverty as a result of their Social Security benefits. Again, you can see how incredibly important these benefits are, but at the same time, how many millions of people are actually still living in poverty or not lifted out of poverty or prevented from falling into poverty each and every year who are receiving these benefits and didn’t actually show up in this report and these statistics right here, right? I would have to imagine if 21.7 million people are being lifted out of poverty or prevented from falling into poverty, how many more people are actually in poverty or falling into that are not accounted for here in this report? I would guess probably a few million. Right?
Sad situation. So anyway, I don’t know that exact number. It was not cited in this report. But again, I would just have to imagine it is probably millions upon millions of people, right? Again, a sad, sad situation.
But here’s what’s going on with this. $409 or $4,908 throughout the course of the entire year. Check this out. I hope you’re sitting down because this is unbelievable. So let’s talk through the details on this.
So as we know, each and every year the annual cost of living adjustment comes out and raises your benefits, right? Sometimes it’s zero 6%, sometimes it’s zero, sometimes it’s 1.3%, sometimes it’s 5.9%, like in 2022. And in 2023 it’s likely going to be significantly higher than that. However, the annual cost of living adjustment is based on what they call the CPIW Consumer Price Index for Urban Wage Earners and Clerical Workers. However, what they also want to do is change the way that the annual cost of living adjustment is calculated and change it to the CPI E, which stands for Consumer Price Index for the Elderly, which better reflects the actual increases in price on everyday goods and services, things like that, out in the real economy that Social Security and fixed income beneficiaries typically spend money on.
So this would better reflect real inflation for the things that fixed income beneficiaries of Social Security actually spend money on throughout the course of the entire year rather than the CPIW, which doesn’t actually reflect expenses and money spent from those people living on a fixed income. It does a little bit, but not quite as closely as the CPI Consumer Price Index for the Elderly. So here’s what’s going on. If they would have implemented the CPIE versus the CPIW back in 2000, so say 21 and a half years ago, right? So back in the year 2000, if they would have implemented the CPIE, which again, they are talking about it right here, right now.
There’s a few different pieces of legislation out there to change this. If they would have done it about 21 and a half years ago. Nearly 22 years ago. If they would have actually implemented this just throughout the time of the last. Say.
Two decades. A little over two decades just implementing this one minor little change. It would have transitioned into an extra $409 more on average per month for the average beneficiary. Or $4,908 throughout the course of the entire year just because of a couple of different things. Long periods of time.
Again, 21 years of time plus compounding. So as a result of these two factors, time and compounding, just these two alone, if they would have made that one simple change from the CPIW to the CPI, it would have changed benefits by an average of $409 more every single month going forward. That’s massive, right? So here today, we could all be sitting here with an extra $409 more on average. Again, on average, one person could have gotten maybe an extra 121 person could have gotten extra, maybe 300.
Another person, maybe 450, another person maybe 600. Again, this is the average when it comes out to right. So that’s massive. Now we’re talking some serious money here just because of maybe some neglect by Congress and not actually making these necessary changes years and years and years ago. Basically, they have, I want to say taken away because it’s kind of what it’s coming down to, right?
They’ve essentially taken away about $409 per month per beneficiary every single month, or about $4,900 every single year. What a sad thing. But again, this just shows the power behind one simple decision added with a little bit of time and compounding because of the cost of living adjustment and how that extra little benefit raised would have been coming in each and every year. And then again the next race, compounded on top of the previous increase, compounded again, again and again, over and over, compounding ultimately results in a big, big amount of money like we’re talking about right here, $409. Again, massive.
Right? So, kind of an interesting report I wanted to share with you in this topic and kind of show you how some of the things that should have been done years and years ago are having huge impacts today. So this is something that’s still in discussions right now. In fact, many different pieces of legislation that are out there right now have this written into them, which is changing the way that the annual cost of living adjustment is actually calculated from the CPIW to the CPI, which would better reflect those actual expenses for fixed income beneficiaries. So here’s the thing.
In the event that they actually do change the way that the annual cost of living adjustment is calculated, yes, it would make some minor changes each and every year in a much better way, right? So the cola might be rather than say 1.3%, it might be 1.5% rather than being 5.9%, it might be 6.2%, right. So it reflects it a little bit each and every year. So if they happen to implement that now, today, yes, we might see a little bit of extra change on that going forward each and every year. But the big factor behind all this is time.
Time is where things really add up in a big way simply because of the same word that I’ve been saying like 50 times throughout this topic, which is compounding. Right? Compounding plays a huge role in all of this because it’s a little race here. Next year it’s another raise based on a bigger number and it compounds once again. Right.
So anyway, kind of a complicated topic as far as the compounding. But the simple fact is just because of those two factors, we could be sitting on an extra $409 more per month right here today. And probably a lot of people would be in a much better in a much different situation than what we’re currently dealing with right here, right now. Now, one more thing I want to quickly throw out there and then of course I’ll let you go, which is we have to take this into consideration. If they would have done this, say 21 years ago, implemented the change of the CPI, well, then they probably would have had to do some other changes too.
Because here’s the thing. We’re already looking at the insolvency issue. If this would have been done years ago, the program may have already reached insolvency at this point, right? Because paying out hundreds of dollars more per month across, say 70 million beneficiaries for over two decades well, again, obviously hasn’t been 70 million beneficiaries the whole time. It’s continually increased a few million people a year.
But that’s a long time period. But the fact of the matter is we may have already reached insolvency in the case that this actually would have been done. So that’s just another hurdle that they would have had to pass. But again, they would have figured it out. That’s the job of Congress.
And of course they would have done something to reform Social Security, save the program, whatever. They would have done. Just like what we’re looking at right here, right now. So anyway, interesting report, right? Yeah, I thought it was very interesting.
And I wanted to share with you right here on this topic. So hope this one helps you out again, as I do get more details on anything going on right now in regards to new bills, packages, reform checks, monthly checks, raises to benefits, or anything else like this. Of course, I’ll be right here for you, breaking it all down and keeping you updated with what is actually going on right now with all this crazy busy time that we’re currently living through.
Share the topic with your friends, family, and on social media. I’ll catch you again bye.