In January 2022, more than 64 million social security recipients may anticipate a 5.9 percent cost-of-living increase.
5.9% Increase in Payments Next Year
In a recently published article in The U.S. Sun, starting in early 2022, the average cost of living, or COLA, is expected to rise by $ 92 per month. The precise amount, on the other hand, will differ from one receiver to the next. Due to the coronavirus epidemic, the economy has seen a significant increase in inflation.
5.9 percent will be added to the benefits of those on social security, Supplemental Security Income (SSI), or Supplemental Nutrition Assistance Program (SNAP). For the first time since 1982, there has been a rise in the number of people in the workforce. In 2009, COLA peaked at 5.8 percent. Inflation has a role in the annual changes. An increased number of monthly payments means higher pricing for consumers. To put it another way, the additional money won’t go very far.
Stephen Goss, the chief actuary at the Social Security Administration, said “Anybody who is currently in receipt of a benefit should take a look at what their benefit is and imagine what a roughly 5.9% increase will do to that benefit level.”
Effect of COLA Increase in Medicare Part B Premiums
Medicare Part B payments are generally withdrawn straight from the monthly checks of recipients. However, not everyone is covered by Medicare Part B, especially if they are still covered by an employer health plan or if they have not yet achieved the 65-year-old age requirement for Medicare, according to a report published in CNBC.
The regular monthly premium for Medicare Part B is expected to rise from $148.50 to $158.50. However, there has been no formal announcement of rates for the next year.
Joe Elsasser, the founder and president of Covisum, a Social Security claiming software firm, says that if you don’t have Medicare Part B, you may increase your monthly benefit amount by 1.059 to get a rough estimate of how much you’ll get next year.