In 2022, Social Security benefits will increase by 5.9%; highest COLA in 39 years; largest COPA in 38 years
In 2022, Social Security recipients will see a monthly increase of 5.9%, according to the agency. The dramatic increase- the largest in 39 years- comes during rising inflation during the COVID-19 epidemic.
According to AP estimates based on Social Security Administration figures, the cost-of-living adjustment, or COLA, will cost the average retired worker about $92 more a month. The increase is a significant increase over the 10-year average COLA increase of 1.65% per year.
The boost will bring the average Social Security payment for retired workers to $1,657 per month.
Social Security recipients may be in line for a historic increase in benefits.
According to The Senior Citizens League, Social Securitys cost-of-living adjustment is expected to rise by as much as 6.2% in the coming year, according to nonpartisan advocacy group The Elder Citizens Alliance. That would be the largest increase since 1983, and a significant boost over the 1.3% increase for 2021.
If the COLA projection is correct, the new average payment would be $1,628, up from $1.534. In January 2022, it will become effective.
The annual increase in Social Security benefits, or COLA, is calculated each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers, also known as the CPI-W, based on the data through the third quarter.
When will COLA be announced?
On Oct. 13 at 8:30 a.m., the Bureau of Labor Statistics of the United States will release the Consumer Price Index data. (7:30 a.m. ET). CT). The COLA amount is typically released the same day by the Social Security Administration, so we could see exactly what recipients can expect.
Increase isn't necessarily good news, but it's a positive one.
Even if the income is large, many beneficiaries wont receive the full amount due to an increase in Medicare Part B premiums and taxes. More on how inflation will take away at this years increase can be found here.