The Social Security Administration has recently confirmed that beneficiaries of its various programs will receive a substantial cash boost in the coming months.
Every year, the SSA grants a cost-of-living raise (COLA) to recipients, bringing their monthly payments closer to actual inflation. The idea is that people on welfare should get raises when costs rise.
The COLA increase for 2022 is a whopping 5.9 percent, the greatest in almost 40 years. This rise results from rising costs in recent months as the United States’ economy recovers from covid-19. In addition, in specific sectors, prices have increased due to significant government financial stimulus and strain on global supply chains.
When will the first Social Security payments be paid in 2022?
The cost-of-living adjustments will benefit an estimated 70 million Americans immediately, but it will be distributed out across many categories. In addition, the COLA increase is expected to help the SSA manage several social security programs.
The first to receive the money will be Supplemental Security Income (SSI) recipients, who are expected to get their payments by 30 December 2021. SSI is a government assistance program for those who are unable to earn an income adequate enough to survive due to age or a disability.
From January 2022, SSI payments should arrive in recipients’ bank accounts on the first of the month, except for months when that date falls on a Saturday or Sunday.
Beneficiaries of Social Security will have their payments spread out by the date of birth.
The vast majority of Social Security beneficiaries in the United States now take advantage of the SSA’s retirement benefits program, which has a projected population of 61 million people. According to the recipient’s birthdate, the procedure is staggered in three waves to guarantee that cheques arrive promptly.
On the second Wednesday of each month, everyone who was born on or between January 1 and December 10 will receive their Social Security payment.
On the third Wednesday of every month, people born on the 11th through 20th of the month will receive their payment.
Finally, those whose birthdates are on the 21st of the month or later will benefit from the COLA increase in 2022. This group will receive their Social Security payments on January 4, 2021: Wednesday, January 26, 2021.