Recipients of Social Security benefits are getting a raise next year. Social Security and Supplemental Security Income benefits are set for their largest increase since the 1980s, according to a Social Security Administration announcement. Approximately 70 million Americans will see a bump, starting with roughly 8 million SSI beneficiaries on Dec. 30, 2021, and the remainder in January 2022.
This Cost-of-Living Adjustment, or COLA, will increase retirees’ payments by up to 5.9%. Recipients who qualify for the maximum amount will receive about $92 more per month or $1,657 more for the year. Rising inflation and its impact on the price of consumer goods in the US are driving the increase — which is considerably higher than the average annual increase of 1.6% during the past 10 years. The cost of goods and services has gone up 5.4% since last September, according to the US Bureau of Labor Statistics’ Consumer Price Index.
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Social Security and SSI beneficiaries should expect a letter in December detailing their new benefit amount. Most beneficiaries should be able to check the status of their specific COLA through their online Social Security account.