Social security recipients will see the highest cost of living increase in 40 years in 2022, a welcome boost for those who rely on the fixed payments and come under pressure after months of soaring inflation in 2021.
The 5.9% increase is higher than in several years, as cost of living adjustments are made according to the Department of Labor’s consumer price index. This is the largest COLA increase since 1982, when recipients received a 7.4% cost of living adjustment.
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When COLA announced in October, Social Security said the average retiree will see their payment increase by $ 92 each month, bringing the average check amount to $ 1,657. The typical couple would see their odds increase to $ 154 to $ 2,754.
The SSA has now published a calendar showing when the around 70 million beneficiaries can expect their payments from January.
If you have a date of birth between the 1st and 10th of the month, you can count on the payment on the second Wednesday of the month.
INFLATION WILL REMAIN IN 2022
Beneficiaries with birthdays between the 11th and 20th receive payments on the third Wednesday of the month, beneficiaries with birthdays between the 21st and 31st receive their checks or deposits on the fourth Wednesday of the month.
While the hike in social security contributions will undoubtedly bring relief to many beneficiaries, it might not cover the rising costs seniors are actually facing as inflation continues to rise for everything from consumer products to gasoline to residential property.
One of the soaring costs seniors face right into the New Year is that Medicare Part B’s monthly premium will increase 14.5% by an amount of $ 21.60. According to the AARP, this is “the largest dollar increase in the history of the health insurance program”.
While the Centers for Medicare and Medicaid Services have emphasized that Social Security COLA will pay these costs, the Medicare increased premium is eating up a significant portion of the $ 92 increase in Social Security for the average recipient.
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Meanwhile, the national debt is around $ 29,000,000,000,000 ($ 29 trillion) and the federal deficit is about $ 3 trillion for fiscal 2021, according to the Congressional Budget Office.
Megan Henney from FOX Business contributed to this report.