American citizens will soon receive a salary increase. With the help of a cost of living adjustment (also known as a COLA), Supplemental Security Income and other Social Security benefits for the disadvantaged Americans are increasing, according to BGR.
Cost Of Living Adjustment or COLA
Upsides for more than 64 million Social Security recipients will start in January 2022 with a 5.9 percent cost-of-living adjustment. On December 30, 2021, approximately 8 million SSI recipients will start receiving higher payments. Income subject to the Social Security tax (taxable maximum) will rise to $147,000, as per SSA.
An increase in benefits or wages to offset inflation is known as cost-of-living adjustments. Inflation for Social Security COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers, updated annually. According to Investopedia, the living costs can also vary significantly to city and state, with large urban areas typically charging more to live.
Social Security Recipients
It’s the most significant increase in nearly 40 years for Social Security recipients. Also, it alludes to the current inflationary situation in the United States in a subtle but significant way. Social Security recipients received notices of the payment increases in the mail last month from the Social Security Administration.
According to SSA, the eligibility requirement for the SSI are the following: aged 65 or older, individuals’ inability to see, or disabled. Individuals that do not have much money or are constrained by resources and lastly is a U.S. citizen or national or is classified as an alien in one of a few specific categories.
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