The year was 1983: the US invaded Granada. A gallon of gasoline cost 96 cents. Michael Jackson’s ‘Thriller’ video premiered. That year also marked the last time Social Security recipients saw a rise in the cost of living that was stronger than the just-announced increase for 2022. This year, Social Security benefits are set to rise 5.9 percent, the strongest increase since the rise. from 7.4 percent in 1983.
Increases in the cost of living are linked to the consumer price index, and rising inflation rates and gas prices due to the ongoing coronavirus pandemic mean Social Security recipients will get a big boost in 2022. The 5.9 percent increase is driving the increase from 1.3 percent from last year, and over the past ten years the increases have averaged only 1.65 percent. The average monthly benefit of $1,565 in 2021 will increase by $92 per month to $1,657 per month for an individual beneficiary, or $19,884 per year.
The change in the cost of living will also affect the maximum amount of income subject to Social Security tax, which will grow from $142,800 to $147,000.
For 2022, the monthly federal payment standard for Supplemental Security Income (SSI) is $841 for an individual and $1,261 for a couple.
However, some of the increase will be absorbed by higher Medicare Part B premiums. The standard monthly premium for Medicare Part B enrollees has not yet been announced, but is expected to increase by $10 per month to $158.30. And the 5.9 percent increase in Social Security may not be enough for seniors to keep pace with rising health care and prescription drug costs.
“You’re happy to get a 5.9 percent increase, but it doesn’t feel like you’re getting 5.9 percent when all your other costs get much higher,” said Nancy Altman, president of the Social Security advocacy group. To work.
Most beneficiaries will be able to find their specific cost of living adjustment online by logging into: mine Social Security in December 2021. While you can still receive your increase notice in the mail, you have the option to get the notice online instead.
Click here for more information on 2022 Social Security benefits.