Inflation has not slowed, and it doesn’t appear to be stopping anytime soon.
As inflation continues, Social Security recipients could see an even bigger increase next year.
With the current increase set to go into effect in 2022, the average person will see around $92 more dollars in their checks. The average check will be around $1,657 per month.
Related: This rule won’t change for Social Security in 2022, and it might cost you thousands
For the average married couple, they will see their checks jump from $2,599 per month to $2,753.
The 5.9% increase in benefits thanks to COLA will benefit 64 million recipients.
The COLA is determined using a calculation and numbers from the Consumer Price Index for Urban Wage Earners and Clerical Workers.
The Social Security Administration determined the increase in 2022 using data from Oct. 2020 through Oct. 2021.
Related: What do I need to apply for Social Security and how long does it take to receive benefits?
With the sharp jump in inflation from the month of November alone, it could create a significant boost with the COLA number next year.
Boston College Research Fellow Matt Rutledge explained to Yahoo Finance that various factors go into determining the increase.
Inflation is impacted by the ports being backed up as well as labor shortages. If these things improve in 2022 the increase announced next Oct. will be impacted.
Related: How can I get my Social Security checks faster?
As inflation increases and COLA protects seniors from it, it may result in a cut in benefits by 2034.
If this happens, seniors may only see 75% to 78% of what they would have normally collected.
This is an issue because half of seniors collecting benefits live off of their benefits.
Ways to combat this is to teach Americans early on about things like 401ks and IRAs, so when it’s time to retire, there’s additional income.
A new study has recently determined that a seniors would need $2 million dollars to retire comfortably.
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