WASHINGTON – The Social Security Administration announced Wednesday that beneficiaries will receive an almost 6% increase in benefits next year.
The increase in benefits, which will affect nearly 70 million people, is fueled by soaring inflation caused by supply chain bottlenecks, labor shortages and others economic disruption due to the Covid pandemic.
The biggest checks will start arriving for most recipients in January.
By the end of December, around 8 million beneficiaries of the Social Security Supplementary Security Income program, aimed at people with disabilities or with low incomes, will start receiving increased payments.
Rising inflation has helped the Social Security Administration determine that the increase in the cost of living, or COLA, will be 5.9% for 2022. Data released Wednesday by the Bureau of Labor Statistics showed that prices rose 5.4% on an annualized basis in September. and the inflation rate increased by 0.4 percent seasonally adjusted in September compared to August.
“Some other adjustments that come into effect in January of each year are based on increasing average wages. Based on this increase, the maximum amount of income subject to social security tax (maximum taxable) will drop from $ 142,800 to $ 147,000, ”the Social Security Administration said on Wednesday.
The government said recipients will receive a notice in December regarding the increase in their payments.
Typically, the increase in COLA has been 1 to 2 percent each year. At the height of the Great Recession, however, in 2009 profits rose 5.8% for 50 million people, which at the time was the largest increase in more than a century.