For 2022, retired workers receiving Social Security benefits will get a 5.9% boost—the largest cost-of-living adjustment (COLA) in 39 years. In contrast, during the last 10 years, the average Social Security COLA was only 1.65% per year. This substantial increase can be attributed to the recent burst in inflation from a strained U.S. economy due to the COVID-19 pandemic. With this COLA, retirees can expect an additional $92 per month on average, bringing their total monthly benefit to an average of $1,657.
Designed to protect Social Security benefits from the loss of purchasing power, the COLA will affect almost 70 million Americans, including Social Security recipients, disabled veterans, and federal retirees. About one-quarter of recipients rely on this monthly payment for all or nearly all of their income.
Meanwhile, a potential bill proposal in the U.S. House of Representatives will seek to address looming Social Security concerns by increasing payroll taxes and modifying the COLA formula. Seniors can also expect to receive information about the Medicare Part B premium adjustment for 2022 soon.
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