In January 2022, more than 64 million social security beneficiaries could anticipate an increase in the cost of living of 5.9%.
5.9% increase in payments next year
In an article recently published in The american sun, starting in early 2022, the average cost of living, or COLA, is expected to increase by $ 92 per month. The precise amount, however, will differ from receiver to receiver. Due to the coronavirus epidemic, the economy has seen a significant increase in inflation.
5.9 percent will be added to benefits for people on Social Security, Supplementary Security Income (SSI) or Supplemental Nutrition Assistance Program (SNAP). For the first time since 1982, the number of working people increased. In 2009, the COLA peaked at 5.8 percent. Inflation has a role in the annual changes. An increased number of monthly payments means higher prices for consumers. In other words, the extra money will not go very far.
Stephen Goss, Chief Actuary of the Social Security Administration, said: âAnyone who is currently receiving a benefit should take a look at their benefit and imagine what an increase of about 5.9% will do. at this level of service. “
Effect of the COLA increase in Medicare Part B premiums
Medicare Part B payments are typically taken directly from beneficiaries’ monthly checks. However, not everyone is covered by Medicare Part B, especially if they are still covered by an employer’s health plan or if they have not yet reached the age of 65 required for Medicare. , according to a report published in CNBC.
The regular monthly Medicare Part B premium is expected to drop from $ 148.50 to $ 158.50. However, there has been no official rate announcement for next year.
Joe Elsasser, founder and chairman of Covisum, a social security claims software company, says that if you don’t have Medicare Part B, you can increase your monthly benefit amount by 1.059 to get a rough estimate of how much you will need. will get next year.