The Social Security Administration announced on Wednesday that the social security cost of living will be adjusted by 5.9% in 2022.
A COLA of 5.9% will be the biggest boost to social security beneficiary checks in about 40 years.
In 2021, the social security COLA is 1.3%.
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Starting in January, monthly cheques for more than 64 million social security beneficiaries will increase. At the same time, starting on December 30, approximately 8 million Supplementary Security Income (SSI) beneficiaries will see an increase.
The estimated average monthly benefit for all retired workers will increase from US$1,565 to US$1,657.
“AARP CEO Jo Ann Jenkins said in a statement that the COLA announced today has increased by 5.9%, which is the largest increase in four decades and is critical for social security beneficiaries and their families. Because they try to keep up with rising costs.
Social security benefits are adjusted annually using a specific set of consumer price index data, the consumer price index or CPI-W of urban wage earners and civilian workers.
The new consumer price index data released on Wednesday showed that consumer prices rose slightly higher than expected in September.
In addition, the Social Security Administration also announced that the maximum income for paying social security taxes in 2022 will increase from US$142,800 in 2021 to US$147,000.
It is worth noting that the premium rate of the medical insurance Part B premium in 2022 has not yet been announced. The payment of these premiums is usually directly deducted from the social security benefit check.
This is a breaking news story. Please check for updates.