Social Security recipients will receive a 5.9% increase in benefits in 2022 – the largest increase in 39 years, the agency said – due to The cost of living adjustment (COLA), caused by the annual inflation rate of 5.4% reported this morning, the highest rate since the 2008 recession.
COLA grew only 1.3% in 2020, and the 5.9% increase represents the biggest jump since 1982.
COLA’s announcement came moments after the Department of Labor announced a larger-than-expected consumer price increase of 0.4% last month, reflecting a 5.4% increase in consumer prices. over the past year.
Under the Social Security Act, Social Security Administration benefits are adjusted annually based on the Consumer Price Index.
$ 92. This is how much the average monthly Social Security payment will increase per month in 2022.
AARP CEO Jo Ann Jenkins told The The Bharat Express News the increase in COLA will be “crucial for Social Security recipients and their families as they try to keep up with rising costs “.
Professor Jeremy Siegel of Wharton said TBEN last week that he expects inflation to continue to rise in the United States, projecting an inflation rate of up to 25% over the next several years.
Maximum social security contributions will increase by 2.9% while benefits will increase by 5.9% in 2022 (TBEN)
Inflation rose slightly more than expected in September, with consumer prices up 5.4% from a year ago (TBEN)