Social Security recipients are getting bigger payments, but they may be lowered thanks to certain price increases.
Americans who collect Social Security are excited to hear that they’ll be getting a bigger check next month thanks to a COLA increase.
The average check will rise by about $92, going from $1,565 to $1,657 in Jan. 2022.
Couples received an average monthly payment of $2,599 in 2021, and can expect a new amount of $2,753 in 2022.
Related: Will these Social Security changes impact you in 2022?
The COLA adjustment was 5.9% this year, the highest in almost 40 years.
This is to help those on a fixed income maintain their purchasing power in a volatile economy.
Rising prices will now cut into the increase seniors were supposed to see next year.
Related: When will Social Security and food stamps be paid during New Year’s?
Here are 5 things expected to rise in price that will cut into the Social Security COLA boost
The cost of food, housing, and gas will rise
High demand and low supply has made almost every product or service more expensive.
Households are spending just under $200 more per month on day to day costs.
This includes groceries, gas for vehicles, and utilities.
Related: SSI recipients will see payments reach over $400 today
Prescription drug costs will rise
AARP stated that 260 prescription drugs have increased by around 2.9%, according to The Sun.
Medicare recipients use the prescriptions the most.
If the Build Back Better bill passes in 2022, it could help to lower the current costs.
Related: 5 biggest changes in 2022 for Social Security benefits
Medicare costs will rise in 2022
Part B, which covers outpatient and diagnostic services, rises every year.
Medicare will rise 14.5% in 2022.
This is an average of $21 more per month, with the deductible rising from $203 to $233 as well.
Medicare Part A will rise by $72 per month as well.
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