There has been a Cost of Living Adjustment (COLA) that will go into effect in 2022. The increase in the Consumer Price Index (CPI-W) from 2020 to 2021 caused the adjustment. 70 million Americans will see an increase of 5.9 % in their Social Security and Supplemental Security Income (SSI) benefits. This is the largest increase since 1982. This adds an additional $92 a month to an average retirement benefit of $1,565 a month. The goal of adjustment is to keep the cost of living the same as prices such as rent, gas, utilities, and food due to inflation.
Citizens that are on Medicare or Medicaid will not necessarily see as large of an increase due to the Medicare premium. In the past, the average annual increase has been 1.65 %. This is a huge jump from that, and is unlikely to happen again anytime soon. The last time there was a jump that big, the next two years there were no benefit increases. Even with this increase, it still may not be enough for seniors and those with disabilities on fixed incomes. The maximum earnings will rise to $147,000 (2022) from $142,800 (2021). Those who receive Social Security benefits as their main income should start budgeting now. For more information, visit https://www.ssa.gov/cola/.
