Cost of Living Boost for People Getting Social Security

Cost of Living Boost for People Getting Social Security

( – Around half of seniors get at least 50% of their income from Social Security, and a quarter rely on it for almost all of their income. Yet, as prices rise every year, recipients have only seen an average annual increase of 1.65% in benefits over the past decade. In light of the latest inflation numbers, the government announced next year’s cost of living adjustment (COLA) will be a startling 5.9%.

On Wednesday, October 13, the Social Security Administration (SSA) announced the 5.9% COLA adjustment for 2022, giving the average beneficiary an extra $92 a month. The announcement thrilled many retired workers, especially in light of rising grocery, gas, and drug costs. The Associated Press shared more about how unique this large COLA is:

While this brought smiles to many faces, many Americans wonder about the long-term effects of such a budget increase. After looking at the data, this could cause the Social Security fund to run out in 2033, years earlier than previously predicted, if the government does not alter its funding.

Hopefully, this benefits increase will help retirees make ends meet during this inflationary period and keep the economy recovering while our nation grapples with the ongoing pandemic. However, Americans must watch the Social Security fund closely if it is to continue on for future generations.

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