new cost-of-living adjustment (or COLA) is added to Social Security payments.The 8.7% raise is meant to help them with higher prices for food, fuel, and other goods and services.
The average recipient will see an increase of more than $140 per month, according to government estimates.But what does the increase mean for the fund that helps pay Social Security benefits?
And what should younger generations keep in mind? Here are some As to some Qs.When you work, some of your taxes fund Social Security.
The government uses those tax dollars to pay benefits to people who have already retired, people who are disabled, the survivors of workers who have died, and dependents of beneficiaries.The adjustments are based on data relating to inflation.While the money is used to pay people currently getting benefits, any unused money goes to the Social Security trust fund.