The Social Security Administration has raised the Cost Of Living Adjustment for payments by 5.9% in 2022 due to runaway inflation and surging prices in just about every category, specifically affecting seniors.
COLA increases in 2022 will be among the largest in history.
As a point of reference, COLAs in the past have fluttered around 1.5%.
Over the past year, inflation has risen to just over 6%, which means that next year’s COLA, although historically large, will just barely be enough to reverse the effects of such high inflation.
SSA estimates that retirees will receive an average of $1,657 in monthly benefits beginning in January 2022.
Prior to the COLA going into effect, seniors received around $1,565, which means with the new $1,657 COLA increase, they will receive roughly $100 more each month.
An average of $2,753 will be paid to retired couples each receiving benefits. Widowed mothers with two kids receive average payments of $3,187, and single widows or widowers alone receive average payments of $1,553.
Employees with disabilities and their spouses who have at least one child will receive an average benefit of $2,383, while all single individuals with disabilities will receive an average benefit of $1,358.
The SSA uses the average payment as the basis for its estimates.
There are a variety of factors that can affect your specific payment, such as how much you earned, whether you were married and whether you had dependents.
If you want to see an estimate of your benefits that is more accurate, you can create an account for mySocialSecurity on the SSA website. You will be able to see your estimates and statements there. Based on the age of 62, 65, and 70, the estimates will show how much you can expect to receive at retirement.