Social Security recipients to get 5.9% more money in 2022
This year’s spike in inflation will mean larger monthly benefit payments for seniors next year. The Social Security Administration has announced retirement benefits will increase 5.9% starting in January 2022.
Approximately 64 million Americans receive Social Security retirement benefits. Another 8 million receive SSI benefits, which will increase by the same amount starting Dec. 30, 2021.
The cost of living adjustment (COLA) each year is based on certain months’ inflation numbers as measured by the Labor Department’s Consumer Price Index (CPI). Annual increases have been small over the last decade because the CPI has remained low.
“Today’s announcement of a 5.9% COLA increase, the largest increase in four decades, is crucial for Social Security beneficiaries and their families as they try to keep up with rising costs,” said Jo Ann Jenkins, CEO of AARP. “The guaranteed benefits provided by Social Security and the COLA increase are more crucial than ever as millions of Americans continue to face the health and economic impacts of the pandemic.”
Jenkins cites research showing that about 25% of seniors rely on Social Security benefits for 90% or more of their annual income.