Retirees on Social Security to Get Boost in Benefits in 2022
Millions of retirees on Social Security will get a 5.9% boost in benefits for 2022. It is biggest cost-of-living adjustment (COLA) in 39 years due to the sharp rise in inflation as the economy reopens from the pandemic closures.
The boost in benefits will go a long way towards helping retirees pay for food, gasoline and other goods and services that already went up.
The 2022 COLA adjustment adds $92 a month for the average retired worker, according to estimates from the Social Security Administration.
With the increase, the estimated average Social Security payment for a retired worker will be $1,657 a month next year. A typical couple’s benefits would rise by $154 to $2,753 per month.
The COLA affects household budgets for about 1 in 5 Americans.
AARP CEO Jo Ann Jenkins called the government payout increase “crucial for Social Security beneficiaries and their families as they try to keep up with rising costs.”
Policymakers say the adjustment is a safeguard to protect Social Security benefits against the loss of purchasing power, and not a pay bump for retirees. About half of seniors live in households where Social Security provides at least 50% of their income, and one-quarter rely on their monthly payment for all or nearly all their income.
Social Security is financed by payroll taxes collected from workers and their employers. Each pays 6.2% on wages up to a cap, which is adjusted each year for inflation.
Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount.
Most people who receive Social Security payments will be able to view their COLA notice online through their personal Social Security account. People may create or access their Social Security account online at www.socialsecurity.gov/myaccount.