#Economic Report: Social Security benefits to jump 5.9% in 2022 in biggest increase in 40 years
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“#Economic Report: Social Security benefits to jump 5.9% in 2022 in biggest increase in 40 years”
Retiree benefits are set to soar because of high U.S. inflation
Corrects the last year the increase in Security benefits was higher
Social Security benefits will increase X% in 2022.
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Retired Americans who collect Social Security are about to get the biggest “raise” in 40 years: A 5.9% increase in their monthly payments starting in January.
Consumer prices have climbed 5.4% in the 12 months ended in September.
If inflation tapers off next year, as the Federal Reserve predicts, seniors could get a small windfall. Yet if inflation remains high they won’t benefit nearly as much.
Read: High inflation to last awhile, Fed’s Bostic says, and it’s no longer ‘transitory’
Cost-of-living adjustments are based on formula tied to the consumer price index. The government made it official after the release of September CPI report.
The average Social Security beneficiary receives about $1,565 a month this year. The scheduled 5.9% increase in 2022 would amount to $92 a month — or $1,104 extra over a full year.
That works out to $1657 a month for the average retiree.
Benefits rose just 1.3% in each of the prior two years, but inflation was also a lot lower. The annual COLA increase is meant to help seniors keep up with inflation.
Nearly 70 million people received Social Security or related benefits in 2021. That’s about one-fifth of the overall population.
Read: What you probably don’t know about Social Security
The annual cost of living increase is determined by taking the average rate of inflation from July through September and comparing it the same three-month period a year earlier, using an index known as the CPI-W.
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