Inflation is to blame for the largest increase in Social Security benefits in nearly four decades.
The Social Security Administration (SSA) announced a 5.9% rise in cost-of-living adjustments (COLA) on Wednesday, the biggest increase in over four decades, with inflation at its highest level in a decade.
Monthly payouts for the average retiree will increase from $1,565 to $1,657 beginning in December or January 2022. Over the previous two years, benefits have increased by 1.3 percent.
The silver lining of rising inflation is that Social Security payouts for seniors in the United States will shortly increase by 5.9%.
This is the biggest jump since 1982.
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In 2021, social security and supplementary security income were received by 70 million Americans, or nearly a quarter of the population.
The Consumer Price Index for Urban Wage Earners and Clerical Workers is used by the SSA to calculate COLA (CPI-W). The average rate of inflation from July to September is used to calculate increases, which are then compared to the same quarter the previous year.
“As millions of Americans continue to confront the health and economic effects of the epidemic, the guaranteed benefits given by Social Security and the COLA increase are more important than ever,” AARP CEO Jo Ann Jenkins said in a statement.
On Twitter, SocialSecurityWorks.org stated that social security necessitates more planning and benefits.
“A bigger rise is welcome news after four decades of insufficient Social Security COLAs. However, it is insufficient. We need long-term measures to protect the financial security of elderly and individuals with disabilities. This entails increasing Social Security and lowering health-care expenditures “According to the tweet,