The social security cost of living adjustment will be 5.9% in 2022, a the Social Security Administration announced Wednesday.
The 5.9% COLA will be the biggest boost to Social Security recipients' checks in about 40 years.
In 2021, Social Security COLA was 1.3%. The last time the annual adjustment approached the 2022 figure was in 2009, when beneficiaries registered a 5.8% increase.
Over 64 million of social security beneficiaries will see their monthly checks increase from January. Meanwhile, around 8 million beneficiaries of Supplemental Security Income, or SSI, will see the increase from December 30.
The estimated average monthly benefit for all retired workers will rise to 1,657 $, up from $ 1,565.
"Today's announcement of a 5.9% CO increaseLA, the biggest increase in four decades, is crucial for Social Security recipients and their families as they try to keep up with rising costs, "said Jo Ann Jenkins, CEO of Social Security. AARP, in a statement.
Social security benefits are adjusted annually using a specific set of consumer price index data, the index consumer prices for urban and office workers, or CPI -W.
New data from the Consumer Price Index released on Wednesday showed that consu mer prices of September have "increased slightly more than expected.
National Committee for the Preservation of Social Security and Medicare said on Wednesday that while the COLA increase for 2022 is "good news for seniors " it also underlines the need tochange the way annual adjustments are calculated.
While Social Security recipients face rising costs of living, the average COLA over the past decade has not been than 1.65%, the group said. Also, in three of the past 12 years the adjustment was zero.
"The fact that this is the biggest increase since 1982 does not speak well of Social Security's ability to keep pace with these spending, "said Max Richtman, chairman and CEO of the committee, in a statement.
The group calls for the annual adjustment of the cost of living is calculated on the basis of different data - the Consumer Price Index for the elderly, or CPI-E - which he says would better measure the costs facing the elderly. The president Joe "Biden and some proDemocratic congressional bills have also proposed to make this same change.
However, the CPI-E is still an experimental index, and not everyone is agree that this would be the best measure.
"This index does not correspond exactly to the population receiving social security, and it has not been not fully studied "Chantel Boyens, senior policy associate at the Urban Institute, said Wednesday during a webinar hosted by the Bipartisan Policy Center.
Providing a one-time increase in benefits would be a better option than adopting the CPI-E measure, Boyens said, due to the fact that it would be more effective in reducing poverty and cost less.
In addition, the Social Security Administration also announced that the maximum income subject to social security taxes will be $ 147,000 in 2022, compared to $ 142,800 in 2021.
In particular, the premium rateMedicare Part B for 2022 has yet to be announced. Payments for these premiums are often deducted directly from Social Security benefit checks.