This week’s declaration of the greatest Social Security cost-of-living adjustment since 1982 was pleasant news for retirees. It will contribute to mitigating the financial woes numerous people are facing. Beneficiaries for 2022 would receive a 5.9% increase in their checks. That is an improvement from a 1.3% benefit increase for 2021.
The largest boost in 40 years in Social Security benefits is leveling up by 5.9%. (Photo: Creative Commons)
Greatest Increase in More Than 40 Years
The Social Security Administration (SSA) declared on Wednesday that the increase in benefits would be the greatest in over 40 years. It comes as the value of food, rent, and other goods keeps increasing because of inflation. Such a boost is also called a cost of living adjustment. In 1982, the Social Security benefits increased by 7.4%.
SSI Beneficiaries
The Social Security and Supplemental Security Income benefits boost will impact an estimated 70 million Americans. SSI beneficiaries will witness their benefits bolstering in January 2022.
The average benefit is slated to rise to $1,657 per month. This is an increase from $92 from 2021. According to the data of the administration, between 1979 and 1982, a boost in benefits leveled up to 14.3% (1980) in such a period as inflation was impending. This had an impact on numerous sectors at the time, involving homeownership and energy.
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COLA Per Month
The amount of added $92 to COLA per month for the average retired worker is a sudden break from a long inflation respite that witnessed cost-of-living adjustments averaging merely 1.65% per year in the course of one decade. With the boost, in 2022, the approximated average Social Security payment for a retired worker will be $1,657 per month. The benefits of a regular couple would increase by $154 to $2,753 a month. The COLA makes an impact on household budgets for an estimated 1 in 5 United States citizens, reported Huntingdon Daily News.
The Anticipation of Seniors
Seniors on Social Security for months have been eager to be informed of what the COLA or 2022’s cost-of-living adjustment will amount to. This number is calculated in adherence to third-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Therefore, a COLA cannot be distinguished until inflation data for September was made accessible. The initiative of COLAs is to aid seniors in maintaining their purchasing power in the midst of inflation, reported Daily Journal Online.
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