Social Security is getting a big change this year — in fact, the biggest in nearly four decades.
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A year of runaway inflation and rising prices in nearly every major category – and particularly those related to seniors – have forced the Social Security Administration to raise the cost of living adjustment to 5.9% for payments in 2022.
The COLA increase in 2022 is one of the largest in history. To put it in perspective, COLAs over the past few years have hovered around 1.5%.
Inflation is currently at just over 6% over the past 12 months, meaning next year’s COLA, while historically significant, is barely enough to wipe out the effects of rampant inflation.
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According to the SSA, the the estimated average monthly benefits for all retired employees are $1,657 as of January 2022. Before the COLA takes effect, the average $1,565, meaning seniors will receive about $100 more each month and $1,200 over the year as part of the COLA increase.
For retired couples who are both receiving benefits, the average payment will be $2,753. A widowed mother with two children receives an average payment of $3,187, and a widow or widower alone receives $1,553.
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Disabled workers and spouses with one or more children receive an average benefit of $2,383, while all disabled workers receive an average of $1,358.
These estimates from the SSA are based on the average payment. Your specific payment may be more or less depending on several factors, such as how many years you worked, your earnings, and whether or not you were married and had dependents. To see a more accurate estimate of your personal benefits, log on to the SSA website to create a mySocialSecurity account where you can view your personal estimates and statements. The estimates include the amount youyou will receive on retirement based on the age of 62, 65 and 70.
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This article originally appeared on GOBankingRates.com: This is the Average Social Security Benefit for 2022 with added COLA