Friday, October 22, 2021
Americans receiving Social Security benefits in 2022 will see "the largest increase in their payments in four decades, reflecting surging inflation during the pandemic."
According to the Social Security Administration, in 2022 the cost-of-living adjustment (COLA) will be 5.9%, which will result in an addition of $92 to retirees' average monthly benefit next year. The increase brings the amount to $1,657, the agency estimates. The 5.9% COLA is the largest since 1982.
The Social Security Administration also said that the maximum amount of earnings subject to the Social Security tax "will increase to $147,000 in 2022 from $142,800 this year, a 2.9% increase."
According to Naomi Fink, a retirement economist at Capital Group, an investment manager, "[t]he extent to which the larger-than-usual Social Security adjustment makes retirees' and other recipients feel more well off will largely depend on whether inflation eases next year compared with 2021. . ."
See Amara Omeokwe, Social Security Benefits to Increase 5.9% for 2022, The Wall Street Journal, October 13, 2021.
Special thanks to David S. Luber (Florida Probate Attorney) for bringing this article to my attention.