Social Security recipients will receive a 5.9% increase in benefits in 2022. That is the largest cost of living adjustment since 1982. The Social Security Administration said that benefits will increase by about $92 a month, bringing the total monthly payments to an average of $1,657.
Last year, the cost of living adjustment was just 1.3% and has averaged 1.4% over the past 12 years.
Most Social Security beneficiaries will see higher checks starting in January, while those who receive Supplemental Security Income will see the increase on December 30.
The increase comes as inflation is causing the cost of living to soar, which has made life difficult for the 40% of recipients who rely on the benefits to pay 90% of their monthly expenses. Since 2000, social security benefits have increased by 55%, but the cost of living for seniors has skyrocketed by 105%.
″Today's announcement of a 5.9% COLA increase, the largest increase in four decades, is crucial for Social Security beneficiaries and their families as they try to keep up with rising costs," said Jo Ann Jenkins, CEO of AARP, in a statement.
"The guaranteed benefits provided by Social Security and the COLA increase are more crucial than ever as millions of Americans continue to face the health and economic impacts of the pandemic," she added.