DORAL, FL – Social Security recipients will now receive a 5.9% boost in benefits for 2022, which represents the biggest cost-of-living adjustment or COLA seen in 39 years. In the past 10 years, COLA’s averaged 1.65% a year.
The announcement, which benefits around 4 million Floridians and 70 million US residents, was made Wednesday by the Social Security Administration following a soar in inflation. Eligible Americans receive a COLA each year based on a one-year increase in inflation in order to help them financially when prices rise.
With the increase, retired workers will go from getting $92 a month to $1,657 a month during 2022, according to estimates made by the Social Security Administration. Also, the average couple’s benefits would rise by $154 to $2,753 per month.
In 2021, the adjustment was of 1.3%, which translated into a roughly $20 a month increase for retired workers.
According to experts, although this is a historical rise, the increase is to help make up for rising costs that recipients are already paying for food, gasoline and other goods and services and it’s also not enough for seniors and people with disabilities.
But it’s a significant boost considering the COLA affects household budgets for about 1 in 5 Americans (including Social Security recipients, disabled veterans and federal retirees) and that half of seniors live in households where Social Security benefits provide at least 50% of their income, according to the AP.
Photo by: Unsplash.com