Expect additional money in your next Social Security check.
A rising increase in benefits will be expected in January 2022.
The Social Security Administration announced the move on Jan. 1 following a 5.9% increase in cost of living costs, which is $93 more per month ($1,116 more per year).
According to the US Bureau of Labor Statistics, this adjustment will add the majority checks to $1,658, up from $1,565 in 2021. The rise, anticipated to affect roughly 70 million Americans, is driven by the effect on consumer goods' prices. "The price of consumer goods has climbed up," according to the US Bureau of Labor Statistics'.
The maximum amount of earnings subject to the Social Security tax will rise from $142,800 to $147,000 as a result of this month's increase.
For more information, click here to see what you'll expect in 2022.
How much will my Social Security check increase?
For those with Medicare Part B, Social Security and Supplemental Security Income (SSI) beneficiaries, in December, received letters detailing their new COLA benefits rate. If you didn't miss this letter, you can verify your specific increase on the web via the following, or you can calculate it yourself by multiplying your monthly benefit by 1.059 and subtracting your Medicare Part B premium.
According to the Social Security Administration, retirees will receive an extra $93 a month on average, while spouses will see a $47 boost, taking their average monthly incomes from $794 to $841. Disabled workers will get a $75 increase on average, from $1,283 a month to $1,358, and disabled widows and widowers will see an average raise of $46 a month, bringing them from $772 to $818 according to the Social Security Administration.
When will I be able to see the COLA payment addition in my Social Security checking?
The COLA goes into effect in January as the benefit comes for December, which is paid in January. An initial 8 million SSI beneficiaries started receiving the increase on December 30, 2021, but the remaining recipients will see the additional money this month.
The benefits are received on the second Wednesday of the month, according to the birth date of the beneficiary: "If you were born from the 1st to the 10th of the month, your benefits are paid on the second Wednesday of the month, and your first increase will appear on your Jan. 12 check."
Your tickets are paid on the third Wednesday, if your birthday falls between the 11th and 20th of the month, and you'll see your first COLA increase on your Jan. 19 check.
On the fourth Wednesday, which will begin Jan. 26 this month, those born between the 21st and the beginning of the month may be eligible for this option.
What is the difference between the increase in Social Security benefits and inflation?
Despite the fact that the 5.9% increase has been the highest in 40 years, it's still not keeping pace with inflation, between November 2020 and November 2021.
"We're still going to see this immense problem with prices increasing faster than the COLA," Mary Johnson, social security and Medicare policy analyst for the Senior Citizens League, said. "So, retirees, anyone living on a fixed income, need to be aware that the 5.9% may appear like a more increase than we've ever gotten," she said, "But once they go through their household budget, they will realize it still won't pay for all the rising expenses."
According to CBS News, Medicare's Part B's standard cost is soaring 14.5% to $170.10 this year, indicating an increase of $21.60 per month, according to Johnson, and Medicare Part B beneficiaries' annual deductible is now $233, an increase of $30 from 2021.
According to the CMS, the increase is due to increasing healthcare prices and utilization, as well as Medicare.
Will Social Security benefits rise as much in 2023?
The Cost-of-Living Adjustment is based on the increase in the Consumer Price Index (CPI-W) from the third quarter of the previous year to the third quarter of the current year. According to the Bureau of Labor Statistics, this year's increase was "the result of broad increases" in the cost of goods, particularly gasoline, shelter, food, used cars, trucks, and new vehicles; if inflation abates this year (a good thing), the COLA will shrink as well. However, the annual adjustment in