On October 13, 2021, the Social Security Administration (SSA) officially announced that Social Security recipients will receive a 5.9 percent cost-of-living adjustment (COLA) for 2022, the largest increase in four decades. This adjustment will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Additionally, increased payments to more than 8 million Supplemental Security Income (SSI) beneficiaries will begin on December 31, 2021.1
Biggest COLA Increase in Decades
While this COLA increase is welcome news for recipients, seniors that rely solely on SS have a long way to go to catch up. The increase is based on the recent rise we have seen in the Consumer Price Index (CPI). Unfortunately, the CPI doesn't always reflect the increases in inflation that most households experience. In the last 20 years household inflation has increased nearly 2 to 1 over the average COLA increase of just 1.3% per year and healthcare costs have outpaced by over 3 to1!
How You Will Be Notified
According to the Social Security Administration, Social Security and SSI beneficiaries are usually notified about their new benefit amount by mail starting in early December. However, if you’ve set up your SSA online account at www.ssa.gov, you will also be able to view your COLA notice online through your “My Social Security” account.1