Social Security COLA for 2022 Largest in Decades

In 2022, Social Security recipients will receive a 5.9% increase in benefits—the largest cost-of-living adjustment (COLA) in almost 40 years. In contrast, over the last 10 years, the Social Security COLA averaged just 1.65% per year. The sizable increase can be attributed to the recent burst in inflation from a struggling U.S. economy during the COVID-19 pandemic. With this COLA, the average retiree can expect an extra $92 per month, bringing their total monthly benefit to $1,657 on average.

 

The COLA is designed to protect Social Security benefits from the loss of purchasing power and will impact almost 70 million Americans, including Social Security recipients, disabled veterans, and federal retirees. About one-quarter of recipients rely on this monthly payment for all or nearly their entire income.

 

Meanwhile, a future bill proposal in the U.S. House of Representatives will seek to address impending Social Security concerns by raising payroll taxes and adjusting the COLA formula. Seniors can also expect to receive details about the Medicare Part B premium adjustment for 2022 soon.

 

Read the full article from AP News.

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