Posted on 10/13/2021 6:30:48 AM PDT by karpov
Seniors and other Americans receiving Social Security benefits in 2022 will see the largest increase in their payments in four decades, reflecting surging inflation during the pandemic.
Next year’s cost-of-living adjustment, or COLA, will be 5.9%, the Social Security Administration said Wednesday. The increase will translate to an addition of $92 to retirees’ average monthly benefit next year, bringing the amount to $1,657.
The nearly 6% cost-of-living adjustment is the largest since 1982, according to Social Security Administration data. The adjustment is calculated based on the Labor Department’s measure of inflation faced by blue-collar workers.
The Social Security Administration also said the maximum amount of earnings subject to the Social Security tax will increase to $147,000 in 2022 from $142,800 this year.
The extent to which the projected larger-than-usual Social Security adjustment makes retirees’ and other recipients feel more well off will largely depend on whether inflation eases next year compared with 2021, said Naomi Fink, a retirement economist at Capital Group, an investment manager.
Consumer prices have risen at the fastest rate in more than a decade this year because trillions of dollars in economic stimulus have supported consumer demand at a time when supplies for everything from toilet paper to new cars have been constrained because of pandemic disruptions.
“If price rises turn out to be fleeting and reflect temporary supply shocks and they subsequently show much more modest rises in 2022, then that would be quite positive for those that got that windfall cost-of-living adjustment,” said Ms. Fink, who added that scenario could position Social Security recipients to boost consumption.
(Excerpt) Read more at wsj.com ...
"This administration is putting more money into the pockets of our Seniors..."
People expected to see a 5.9% increase in their SS pension check will be surprised as they always are when Medicare premium increases eat up almost all of the COLA.
“Thank you, Lesko Brandon.”
The increase will translate to an addition of $92 to retirees’ average monthly benefit ...
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That should provide for the required downpayment on a pot roast.
Yup, while not telling them they will be paying 10-20% more for just about everything, they will be getting a 5.9% increase in benefits (they paid for).
If inflation continues it will be small potatoes. Gas, food, utilities all going up and there is no top. I’m exceeding my food budget by almost $100 a month and that’s just food. Every bit of that increase will be eaten up just trying to stay level.
Woo Hoo!
And Ferrari sales skyrocket!
if the cola is 5.9% you can bet the inflation rate is much higher
could position Social Security recipients to boost consumption.
nonsense
Just in time for the mid-term election.
Don't forget, seniors, who is responsible for your "raise."
good point
i hear alpo with hot sauce is quite tasty
What’s so shocking is how much groceries have gone up.
There are only two of us and I rarely get out of the market without spending around $100 - and we are not extravagant in any way, I am a coupon clipper - that is for basic food and supplies.
Can’t imagine what the cost is going to be over the holidays when family visits...
It’s like clock work!!!
So, what is continuing to hold interest rates down? Manipulation?
The increase will translate to an addition of $92 to retirees’ average monthly benefit .........About enough for 1.5 tanks of gas? The Gov’t giveth and taketh in taxes and “free” benefit costs. And the beat goes on? This has to be the greatest Brandon upped Admin. in the history of our nation. Its like we’ve been cursed, and an evil spell was applied. Please tell me we aren’t ripe for a dictatorship to stop the insanity. I fear it will come.
Medicare Part B rises by $10.
Social Security Benefits will drop by 22% when system hits Pay as You Go status.
This was engineered into the system in 1933
Social Security Benefits will drop by 22% when system hits Pay as You Go status.
This was engineered into the system in 1933
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