Millions of Americans are on the verge of receiving what amounts to a pay increase. This is due to a cost-of-living adjustment (also known as a COLA), which is increasing the amount of Supplemental Security Income and other Social Security benefits received by these disabled Americans.
The Consumer Price Index, which is a key measure of consumer inflation produced by the Bureau of Labor Statistics of the United States Department of Labor, is the source of that COLA.
This index tracks the price of certain goods and services that are purchased by individuals. As for the year 2021, it is expected to rise by 7%, the largest annual growth rate seen in nearly 40 years.
As a result, the Social Security Administration has announced that the monthly payments it makes to its disabled beneficiaries will increase by 5.9 percent this year. a rise that will be reflected in the Social Security checks that will be issued later this month.
In addition, the Supplemental Security Income payments, which began to be distributed in December, reflect this trend.
Amounts received as Supplemental Security Income
The 5.9 percent increase in the Consumer Price Index (CPI) was announced in the fall. It is the largest increase in the number of Social Security recipients in approximately 40 years. Furthermore, it alludes in a roundabout way to the effects that inflation is having on the United States at the moment.
Prices are rising across the board right now, driven in part by the costs associated with the pandemic. This includes everything from automobiles to the cost of groceries. The Dollar Tree retail chain, which caters to budget-conscious shoppers, has even announced that most of its prices will be set at or above the $1 mark, as implied by the name of the chain.
Social Security recipients received notices from the Social Security Administration last month informing them of the payment increases, which were mailed to them. This year, the maximum federal benefit for Supplemental Security Income recipients will be $841 (and $1,261 for couples), according to the Social Security Administration.
Checks for stimuli
Sadly, this news comes at a time when millions of American families are no longer receiving their monthly stimulus checks, following President Biden’s unsuccessful attempt to have them extended in the Senate.
Monthly child tax credit checks, which were issued until the middle of December, are referred to as “them” in this context.
As a result, unless Democrats can wrest a Republican vote or two from Republicans, the votes for additional checks are simply not there at this time, given the current political dynamic in the Senate.
As a result, it is difficult to ignore the fact that the payments are, unsurprisingly, extremely popular among Americans across the country. Especially when you consider that approximately 36 million people took advantage of them during the six-month period they were available.
The second half of last year’s child tax credit is the only related benefit that is guaranteed this year for a large segment of the American population at this time. That is something that will be reimbursed to you in the form of a tax credit. You’ll be able to claim it when you file your federal tax return in a few weeks — or months, depending on the situation.