Social Security recipients will see a $92 dollar boost this January thanks to a 5.9% COLA boost this October.
While it’s the biggest boost in recent history, it may not be worth a lot due to the rise in price of so many necessities.
The boost is 5.9%, but the rise in inflation in Sept. was 5.4%. The point of a COLA boost is to keep up with the cost of living and any inflation that may occur.
Unfortunately, there are five necessities that will likely eat away at the extra cash every month.
These five things will cancel out the COLA boost for social security in 2022
Food, gas, housing
Household necessities have become much more expensive since the pandemic began.
In all, households are spending around $175 dollars more on average every month.
This includes rent, gas, groceries, and everything else like heat and electric bills.
Drug prices have increased side by side with everything else.
The average increase according to AARP is around 2.9% for each drug of the 260 most commonly used drugs.
President Joe Biden’s Build Back Better agenda may help that if it passes, and would allow Medicare and drug manufacturer’s to come to their own drug prices.
Monthly Medicare costs are going to get more expensive in 2022.
Part B covers outpatient and diagnostic services, and includes a premium that goes up every year.
The cost right now is $148.50 per month and the expected increase will bring it to $157.70 in 2022.
Medicare Part A is not expected to increase and covers hospital care.
Related: Five changes are coming for Social Security in January, especially for retired and disabled Americans
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