2022 Social Security raise: How will high inflation impact your cost of living
Senior citizens are more than familiar with the surprising historic inflation rate this past November. But they may be surprised again this January when they receive their monthly Social Securitychecks. The Social Security Administration announced the biggest annual cost-of-living adjustment in the last four decades with a 5.9% boost on checks for 2022.
Also during November, the measurement for a basket of consumer goods and services skyrocketed a 6.8% year-over-year, making it the highest since 1982. This will directly impact retirees that live on a fixed income and have been so doing it for years. Higher prices will cut directly into their ability to pay rent, prescription medications, and food supplies.
More than 64 million Social Security Beneficiaries will see increases in their monthly checks. It’s estimated that the average monthly benefit for retired workers will rise up to $92 USD, taking it from $1,565 up to $1,657.
Rising Medicare Part B Premiums could also be a factor in the rise in monthly checks, as the standard B Premium for next year will rise from $148.50 to $170.10, a 14.5% increase. The payment of this service is often deducted from the social security checks the beneficiaries receive each month.
COLA 2022 increase
The Social Security Administration (SSA) calculates the COLA increase based on the CPI-W. In this way, insurance benefits are aligned with rising wages and the cost of consumer goods to protect and ensure the purchasing power of Social Security beneficiaries when inflation is high.
Monthly payments for couples where both spouses receive benefits, the average will be $2,753. Payments for widowed mothers with two children, the average will rise to $3,187 dollars and for widows without children it will be $1,553 dollars per month. For disabled workers with a spouse and one or more children, the average monthly payments received for 2022 will be $2,383, and for workers with a disability, $1,358.
The payment date will depend on your day of birth. Those born between days 1 and 10 receive the check on the second Wednesday of the month. Those who were born from 11 to 20 on the third Wednesday and those from 21 to 31 on the fourth Wednesday.