COLA 2022: When will the first payments arrive for SSI beneficiaries? – Community News
Social Security

COLA 2022: When will the first payments arrive for SSI beneficiaries?

Last month, the Social Security Administration (SSA) announced a massive cost of living (COLA) adjustment for Social Security recipients in 2022. 5.9% increase is the largest in 40 years and reflects the difficult financial situation many find themselves in due to the pandemic.

The increase has consequences for almost 70 million Americans who receive Social Security benefits or Supplemental Security Income (SSI). SSI aims to help people who are unable to earn adequate wages, usually due to disability or age.

This group will be the first to benefit from the COLA increase; the increased SSI payments are sent from: Dec 30, 2021.

A payment schedule recently released by the SSA shows that the SSI payments will arrive at the first day of the month throughout 2022, unless that date falls on a Saturday or a Sunday. If that happens, as is the case in January 2022, payment will be sent at the end of the previous month.

How much will the increased SSI payments be worth to recipients?

The sharp rise in COLA is intended to compensate for inflation recorded in recent months, an inevitable consequence of the various forms of economic stimulus of the past 18 months. For example, the stimulus measures stimulated the purchasing power of tens of millions of households, but this led to price increases in some sectors.

The SSI payments vary between recipients and are calculated based on the applicant’s work history, other sources of income, and their location. However, if taken as an average, the COLA increase is worth an extra $47 per month for individuals and $70 per month for couples.

Legislators propose an increase in social security

Social Security has been part of the national safety net for decades, but there are concerns that the SSA will soon be unable to cover the costs of the vital programs it funds. Confidence supporting the programs financially is expected to have no more money within 15 years, which could lead to a 20% discount for the tens of millions of people who depend on the payments.

The Social Security 2100 Act: A Sacred Trust, proposed by Rep. John Larsson, would incorporate new sources of funding and add new forms of support, such as health care loans for those unable to work because of caring for a family member.

The proposal is supported by MEP Alexandria Ocasio-Cortez, who spoke about the importance of robust social security programs: “To have that social safety net is not only good for us individually, it makes us feel like we a part of a society that respects our elderly and values ​​our vulnerable.”