$409 more per month for Social Security beneficiaries, which would translate into a little over $4,900 for the entire year. I have all the details and everything you need to know right here on this topic. you know that I’m constantly doing research all day, every single day especially focused on Social Security, retirement, disability, SSDI survivors, SSI, VA, RRB, seniors, older adults, elderly people with disabilities, low income, and no income.
I’m constantly trying to find anything we possibly can to get some money, benefits, programs reform, or anything else out there that may be popping up that we can take advantage of during this time. Well, I do want to share with you some new information that is came across right here on this topic. However, before we get into that, let me quickly ask you, what would an extra $409 do for your life right now on a monthly basis? Well, I’m going to be honest with you. I probably can anticipate the answers I’m going to see down in the comments section.
It would be absolutely life-changing for so many people right now, especially during this very high inflationary period that we’re currently living through. Well, that’s kind of interesting because even for the last couple of years now, we’ve been basically been asking Congress we’ve been begging Congress for a $200 per month raise. Well, check this out. This would be more than double that. Yes, that’d be a pretty big deal.
Right. And I already know that for a lot of people, this would be absolutely life-changing for our lifestyles, for everything that we need right now, it would be a game-changer for a lot of people. Anyway, I do want to talk through the details of this report right here on the topic.
I am your one and only daily advocate. And like I just said, I am constantly doing research every single day, trying to find any types of money or programs, checks, anything else like that’s going on out there right now that you can take advantage of. Like I said, during this very busy time, as prices continue to rise on literally everything, incomes are not keeping up with prices that are increasing. Therefore, we got to take advantage of some of this other stuff going on right now.
I’ll continue to be here for you right by your side, helping you out in any way that I possibly can and making sure that you’re staying updated with everything going on. All right, So this is pretty interesting. I just came across this another report here, and I want to talk about the details on this because this is actually impacting about 65 to 70 million beneficiaries. The reports are saying that as a result of some things going on right now, you should actually be receiving on average, an extra $409 per month for your monthly benefits, which would actually translate into a little bit over $4,900 every single year. That would be massive. Right,
That would actually solve a lot of the issues that a lot of people are having right now with simply not having enough money. Well, the problem is incomes are not keeping up with rapidly rising prices, especially for the low income and fixed income, which again, I want to talk about in a little bit more detail right here in this video. However, did you realize this just in the last 22 years or 21 years? I guess I should say since 2000, the purchasing power of Social Security benefits has decreased or depleted, declined by 32% Yeah.
So basically that means that the dollars that you’re receiving now are basically about 32% less than what they were about 21 years ago, simply because your benefits have not kept up with the rapidly rising inflation. And basically the cost of living as a result of that, the benefits are about 32% less than what they should actually be right now. That’s big. I mean, seriously, that is huge. That is basically just rapid decay of purchasing power like we’ve talked about so many times previously.
The video is because of the rapidly rising inflation right now. Well, this is over a very long period of time. About 21 years is what this is actually being pegged off of Right. So about 32% higher is where benefits should actually be to be keeping up with where prices and everything currently is right now, just the average cost of living.
Right, Things were very different 21 years ago back in Y, two K. Remember y, two K. Oh, that was a funny time, right? Yeah.
I haven’t said that in probably 20 years, Right. Sorry, I don’t know where that came from. I just came across as I was just saying that and I thought, why not throw it out there? But yeah, 2000 things have changed a lot in the last 21, a little over 21 years.
Right. Well, check this out as well. According to this report, Social Security is responsible for lifting 21.7 million people out of poverty every single year. Again, that is a huge number, right. That’s like 15% of our population.
That’s a lot of people that are being lifted out of poverty every single year because of Social Security. Well, check this out.
Of those 21.7 million people are retirees, recent retirees, again, actually relying on Social Security benefits for the vast majority of their incomes, Again. So about 15 million people who are recent retirees or retired receiving Social Security benefits are being lifted out of poverty simply because of these benefits. Well, check this out as well. This report also went on to say that 89% of respondents in a recent poll said that they rely on their Social Security benefits for the vast majority of their monthly income.
Again, that’s a lot right. A lot of people are relying on this very important program. However, here’s the issue and where the extra $409 is actually being stated from. So here’s what’s happening as a result of how the annual cost of living adjustment is actually calculated each and every year. It’s being calculated in such a way that does not accurately reflect the actual living expenses for those people living on Social Security benefits.
So simply because of the lack of calculation or the lack of accurate calculation for how the Cola should actually be calculated, as in it should better be reflecting the actual expenses for people living on Social Security, as in the CPIE Consumer Price Index for the elderly, rather than the current calculations that they’re using the CPIW. As a result of that, it actually accounts for a little small percentage each and every year. However, over long periods of time of inaccurate calculations, or what I should say is the calculations are accurate, but rather the way in which that they are calculating the Cola, as in it’s not actually adjusted for the actual cost of living for those people living on Social Security. Because of that, it’s resulting in a fraction of percentages each and every year. And over long periods of time, those fractions turn into half a percentage points, into three quarters into 1%, and multiple percentage points over long periods of time.
Well, it actually results in an extra $409 per month for Social Security beneficiaries that you should be receiving just because the cost of living adjustment hasn’t actually been accurately accounted for those living expenses for fixed income beneficiaries over this long period of time, kind of get what I’m saying. So if they were to implement this new way of calculating the annual cost of living adjustments each and every year, if they were to implement it today, you probably wouldn’t see that much of a difference on your monthly benefit. It’s a little tiny bit of a fraction of a percentage every single year, right? Well, again, it’s based on inflation is based on all these different metrics. However, as inflation continues to rise and as these numbers continue to adjust higher and all of these factors are put into place and time once again, time is a huge factor behind all of this.
We’re talking 21-plus years behind all of this. And as a result of this, because time many years, two decades, a little over two decades has actually been in account for this. Basically, as a result of that, it would actually be resulting in an extra $409 per month. If these measures were actually put in place a little over two decades ago, 21 years ago, if these were put in place on average, according to this report, your benefits would actually be $409 more. Again, this is on average now, for some people, it could maybe be $200 more per month.
For some people, it can maybe be $500. But the point is, on average, they’re saying $409 more, which would actually translate into $4,900 or a little bit more than that over the course of the entire year. So one minor, minor adjustment to the way that they calculate the raise each year could have accounted for nearly $5,000 a year of extra money that is essentially being missed out on right now. However, there are a couple of underlying issues with this. Now, of course, we’ve talked about Social Security, insolvency, and things like that going forward, right?
Well, here’s the thing. As of right now, they’re saying that the program would likely be insolvent by around 2032, or 2033 around there So about ten years out from right now. However, if they would have been accounting for the way that they should have been running the cold raise each and every year, that Insolvency date would probably be moved up significantly, probably. Who knows how much.
I mean, it could be a matter of just a couple of years as of right now, if that were the case. So then Congress would have this major issue on their hands, and they’d have to address it pretty quickly here rather than kind of dragging their feet on this thing because they have about ten years to go. But again, that’s a totally another issue that we can talk about in a separate topic. But again, I just want to throw that out there, saying, yes, this would be great, more money in your pocket. But again, it would also address some additional issues for Social Security going forward,
and it would probably increase the timeline or speed up that timeline on Insolvency and all kinds of other issues that would be as a result of that. But the deal is money in your hand now is what everybody needs versus worrying about what the Insolvency issue is going to be in a decade from now. Again, Congress will get that figured out.
They have a lot of time and they’ll be forced to figure something out. Otherwise, Social Security would need to reduce benefits by about 22% as of right now. And again, that’s probably going to calculate even higher and it’d be adjusted as we get closer to the Insolvency date. Anyway, just another interesting report I want to share with you. But one more way that fixed income beneficiaries are kind of falling behind is simply because the raises are not keeping up with what they actually should be right now.
Anyway, as if you get more details on any of this information, of course, I’ll be back here for you breaking it all down, helping you out in any way that I possibly can, as well as making sure that you are staying updated with everything going on. Enjoy your day and I’ll catch you again later in the next topic.