The biggest changes in forty years is coming to Social Security at a time consumer prices are rising, forcing the Social Security Administration to bump up the cost of living adjustment (COLA) to 5.9% for 2022 payments.
COLAs of past years have hovered around 1.5%. Inflation currently stands at just above 6% over the past 12 months, meaning the COLA for next year, although historically substantial, is barely enough to wipe away the effects of rampant inflation.
The SSA said that the estimated average monthly benefits for all retired workers will be $1,657 beginning in January 2022. Before COLA takes effect, the average is $1,565, which means seniors will receive roughly $100 more each month and $1,200 over the year as part of the COLA increase.
For retired couples, both receiving benefits, the average payment will be $2,753. A widowed mother with two children will receive an average payment of $3,187, and a widow or widower alone will receive $1,553.
