70 million Americans benefitted from the COLA increase that went into effect in 2022, boosting their Social Security checks.
The rise was 5.9%, one of the highest increases in recent history.
SSI went up as well.
The maximum amount of earnings that can be taxed by Social Security was bumped to $147,000 for 2022.
COLA payments explained
“Cost of living adjustment” is what COLA stands for, and adjusts current payments to Americans through Social Security.
The COLA system was put in place in 1975 to protect beneficiaries on a fixed income from inflation.
The amount goods and services have inflated according to the CPI are taken into account and payments are adjusted accordingly.
Are COLA payments the same as Social Security payments?
These adjustments are automatic each year, though some years there may not be an adjustment.
The adjustment will never go down, only up if at all.
This is a direct link to what a Social Security or SSI payment is going to look like each year.