Under SandersвЂ™ and DeFazioвЂ™s legislation, average benefits would climb to $1,866 per month. This hike would result in an extra $2,400 per year for those collecting Social Security.ДЄccording to the Social Security Administration, the average retiree was collecting $1,666 in monthly Social Security benefits in April 2022. The legislation would increase monthly benefits for all current and new beneficiaries by $200 per month. households would not see their taxes increase as a result of this provision. The bill would lift this cap and subject any income above $250,000, including capital gains, to Social Security payroll taxes. Currently, any earnings above $147,000 are exempt from Social Security payroll taxes.

HereвЂ™s a look at some of what the Social Security Expansion Act would do and how it may affect your bottom line: Raise Taxes on the Wealthy to Extend Solvency of Social SecurityД«y raising taxes on people making over $250,000, the bill would extend the lifespan of Social Security for another 75 years. However, given the current polarized composition of the Senate, it remains to be seen if any version of the bill could generate enough support to pass. While thatвЂ™s one year later than last yearвЂ™s projections indicated, Social Security benefits would drop by 23% in 2035 if no action is taken to replenish the trust fund before then.ДЄs currently written, the legislation represents a comprehensive overhaul of the Social Security system. The legislation comes on the heels of the Social Security AdministrationвЂ™s most recent report on the health of the Old-Age & Survivors Insurance and Disability Insurance (OASI) Trust Fund, which is now expected to run out of money by 2035.

A financial advisor can help you plan for retirement and generate retirement income beyond Social Security.

$200 social security increase