Hot topics | Coronavirus pandemic

What is this 5.9% increase in Social Security benefits per month?

What is this 5.9% increase in Social Security benefits per month?

The Social Security Administration today stated that 70 million Americans who receive Social Insurance benefits will see a 5.9% increase in 2022, which will be the first since the government began the program.

In January 2022, more than 64 million Social Security beneficiaries will be eligible for the 5.9% cost-of-living adjustments, or COLA, that will begin for more that 64 millions. On Dec. 30, 2021, payments to about 8 million SSI beneficiaries will increase.

The increase, the largest in 39 years, means an extra $92 a month for the average retired worker. The Social Security Act links the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labors Bureau of Labour Statistics, which means that a lot of the rise will be eaten away by higher inflation costs.

This years COLA represents a substantial improvement over the 10-year average increase of 1.65% per year. It is also the largest increase since 1983, when benefits rose by 7.4%. Last year, the increase was 1.3%.

Heres the monthly increase breakdown from the Social Security Administration:

  • All retired workers Now $1,565; after increase $1.657
  • Couple with age, both receiving benefits $2,599; after increase $2.753 - Now $25,589; $1,753.
  • Now $3,009; after an increase of $3.187.
  • $1,467; after increase $1.553
  • $2,250; after increase $2.383 Disabled worker, spouse, and one or more children - Now $2250, after boost $2383.
  • All disabled workers $1,282; after increase $1.385.

.

You may also like: