Start of the increase in the cost of living of Social Security: what you need to know
Social Security beneficiaries are expected to experience the biggest increase in the cost of living in 40 years in 2022, a welcome boost for those who depend on fixed payments and feel the pressure after months of high inflation in 2021.
The 5.9% increase is higher than that observed for several years, because the cost of living adjustments are made in accordance with the consumer price index of the Ministry of Labor. This is the largest increase in COLA since 1982, when beneficiaries received a cost of living adjustment of 7.4%.
Announcing the COLA in October, the Social Security Administration said the average retiree will see a monthly payout increase of $ 92, bringing the average check amount to $ 1,657. The typical couple would see their benefits soar from $ 154 to $ 2,754.
The SSA has since issued a calendar showing when the roughly 70 million beneficiaries can expect to receive their payments starting in January.
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For those with a birthday between the first and tenth of the month, they can expect to receive their payments on the second Wednesday of the month.
Beneficiaries with a birthday between the 11th and 20th will receive payments on the third Wednesday of the month, and those with a birthday between the 21st and 31st will receive their checks or deposits on the fourth Wednesday of the month. .
While increasing the amount of Social Security payments will undoubtedly bring relief to many beneficiaries, it might not cover the growing costs that older people actually face as inflation continues to rise for everything, from consumer goods to gasoline to housing.
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One of the growing costs that seniors directly face in the new year is that the monthly Medicare Part B premium is expected to increase by 14.5% to $ 21.60. According to AARP, it is the “largest dollar increase in the history of the Medicare program”.
While the Centers for Medicare and Medicaid Services have pointed out that Social Security’s COLA will cover this cost, the Medicare premium increase consumes much of the Social Security’s $ 92 increase for the average beneficiary.
Meanwhile, the national debt is about $ 29,000,000,000,000 ($ 29 trillion), and the federal deficit is about $ 3 trillion for fiscal 2021 according to the Congressional Budget Office.
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Megan Henney of FOX Business contributed to this report.
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