Social Security’s millions of pensioners will receive a 5.9 percent boost in benefits for 2022. Moreover, the biggest cost-of-living adjustments in the last thirty-nine years follow a burst in inflation as the economy of the United States struggles to get rid of the drag of the COVID-19 pandemic. According to estimates Wednesday from the administration of Social Security, the COLA amounts to an additional $92 per month for the average retired employee.
It is a sudden break from a long pause in inflation that saw cost-of-living adjustments by an average of only 1.65 percent yearly over the last ten years. With the rise, the projected average Social Security payment for a superannuated worker will be around $1657 per month next year. In the same way, the typical benefits of a couple of increase by about $154 to $2753 per month.
Social Security cost-of-living increase will boost benefits 5.9% in 2022 as inflation spikes.
Now that’s more like it.
Older Americans scraping by on meager increases in their Social Security checks the past decade will reap a relative windfall next year. pic.twitter.com/YVJlhIpw11
— PrismEntLLC 🌈💎 ✊ (@prismentllc) October 13, 2021
However, that is just to help make up for inflation in costs that recipients are already paying for gasoline, food, and other services and goods. In addition, since the coronavirus outbreak, Americans noted price increases for salaries paid to caregivers who sometimes spell them and for personal care products.
Moreover, the COLA affects household budgets for around one in five Americans. That includes the recipients of Social Security, federal retirees, disabled veterans, approximately seventy million people overall. For baby boomers who retired within the last fifteen years, it will be the biggest increase they experienced.
Boost for Social Security Recipients
Inflationary pressures are driving a 5.9 percent increase in payments for Social Security beneficiaries, a cost-of-living surge averaging around $92 per month retired worker starting in December.
Graphical Representation of Social Security cost-of-living Adjustments since 1990
Jo Ann Jenkins, the CEO of AARP, called the government payout to rise crucial for the beneficiaries of Social Security and their families as they try to maintain rising costs. Legislators say the adjustment is a protection to the benefits protect Social Security against the loss of buying power and not a pay knock for retirees. Around half of the seniors live in households where providers of Social Security provide at least fifty percent of their income, and one-quarter depend on their monthly payment for all or approximately all their income.
Payroll taxes were gathered from employees and workers financed Social Security. Each pays 6.2 percent on wages up to a cap, which is adjusted every year for inflation. In 2022, the maximum amount of earnings dependent on payroll taxes of Social Security will surge to $147000.