CLEVELAND (WJW/AP) — Rising inflation is bringing a sizeable increase in Social Security’s annual cost-of-living adjustment (COLA) for next year.
The Social Security Administration recently announced that Social Security and Supplemental Security Income (SSI) is increasing by 5.9% for millions of Americans. This is a huge jump from the average 1.7% annual increase over the last decade.
According to the Associated Press, the move reportedly affects the household budgets of about 1 in 5 Americans, including Social Security recipients, disabled veterans and federal retirees, about 70 million people.
Without the increase, a retired worker could expect to receive, on average, $1,565 per month in 2022. With the change, that Social Security payment moves to $1,657, the administration said.
About half of seniors reportedly live in households where Social Security benefits account for at least 50% of their income, and one-quarter rely on their monthly payment for all or nearly all their earnings. For this latter group, the COLA can literally make a difference in what they’re able to put on the table.
Beneficiaries can expect to hear via mail about the exact amount of change coming to their 2022 payments starting in December. The information can also be found online at socialsecurity.gov/myaccount, for those who have created accounts.
Head here to find out how exactly the COLA is calculated.