Social Security Cost of Living Adjustment Will Be 5.9%, Highest in Four Decades

By:
Ruth Singleton
Published Date:
Oct 13, 2021

Courtesy of the Social Security Administration

The Social Security Administration announced that the 2022 cost of living adjustment (COLA) will increase to 5.9 percent, the highest in four decades, CNBC reported. The COLA for this year was 1.3 percent. 

The Social Security Administration adjusts its benefits annually, using specific data from the Consumer Price Index. Recently released data indicated that consumer prices rose slightly more than expected in September.

Because of the increase, the estimated average monthly payment for retired workers will go from $1,565 to $1,657. The increases will begin with the January payments to the nation’s more than 64 million Social Security beneficiaries. About 8 million Supplemental Security Income beneficiaries will start receiving increased payments on Dec. 30. 

In addition, the maximum earnings subject to Social Security taxes will rise from $142,800 to $147,000 in 2022. There hasn’t yet been an announcement about the rate for Medicare Part B premiums for next year. Those premiums often get deducted directly from Social Security checks. 

Click here to see more of the latest news from the NYSSCPA.