Another increase! The Social Security Administration announced another cost-of-living adjustment (COLA) to social security benefits. Around 70 million people who receive Social Security benefits will receive a benefit increase of 5.9% to accommodate for the rising cost-of-living due to inflation. The annual COLA is tied to the increase in Consumer Price Index which is determined by the Department of Labor’s Bureau of Statistics.
The 8 million individuals who are SSI beneficiaries will see the COLA increase in their checks in December of 2021. The other 64 million Social Security beneficiaries will see the adjustments impact in January of 2022. The individuals who receive both SSI and Social Security will see the COLA adjustments in both 2021 and 2022.
January continues to be a month of financial change. The average wages will increase at the beginning of the year. This increase will change the maximum amount of earnings that are subject to Social Security tax.
The beneficiaries stated above will be notified of their new benefit amount in December by mail. You may be able to access your COLA notice online through your account at MyAccountSSA. You will need your social security number to create or access your account.
Medicare changes for 2022 have not been released, but you will be able to view those at Medicare.gov. If you are a Social Security beneficiary and receive Medicare, the exact adjusted benefit will not be computed until the Medicare premium amounts are announced. Final 2022 benefit amounts will be included in the COLA notice received in December.