Social Security Cost of Living Increase 2022
The Social Security Administration has announced that the cost of living adjustment (COLA) will be 5.9% in 2022. The increase will come after a year of soaring inflation that has pushed prices of just about everything up. This has been bad news for many senior citizens who are struggling to keep up with rising costs. Last January, beneficiaries received a COLA of just 1.3%. Whether this increase is enough to help them stay afloat will depend on the inflation rate in the coming years.The average monthly payment for retired workers will increase by $92, making it the largest increase since 1982. The maximum payment will go up to $4,124 a month or $49,497 annually, depending on the beneficiary's situation. AARP president Jo Ann Jenkins says the increase will mean more hardship for many beneficiaries than it will be for the majority. Inflation can also lower the amount of money a retiree can save for retirement.In 2022, the cost of living adjustment will increase by 5.9% for 64 million Social Security and Supplemental Security Income beneficiaries. The increase is based on the Consumer Price Index (CPI) and the increase in the cost of living during the year. The CPI will be higher by 7.9% in February of 2022, which means that the COLA will be a little more than $76 per month for some.
