Social Security benefits increasing in 2022 | Social Security, SSDI & SSI - 4th Stimulus Check

 Social Security benefits increasing in 2022 | Social Security, SSDI & SSI - 4th Stimulus Check

Well, now to another developing story today impacting many people, especially right here in Florida, Social Security benefits are getting a big bump.

Nearly 70 million Americans will see an almost 6% increase in their benefits in 2022. Abc Action News reporter Mary O'Connell breaks down how much more you could see in your wallet and what financial advisors want you to keep in mind with other costs on your plate.

Social Security and Supplemental Security Income benefits will go up 5.9% in 2022. The biggest cost of Living adjustment, or Cola in years.

That cost of living adjustment is based on something called the Consumer Price Index. Or let's just call it the CPI or Inflation. And this year we have seen higher than average inflation.

The Social Security Administration notes that the Cola is meant to help offset rising costs. Over the last ten years, the Cola has averaged about 1.7% annually. So what's behind the bigger increase?

Prices are going up. Prices are going up for a gallon of gas. Prices are going up for the Cafe Mocha. You stop and get on the weekends or on your way to work.

Social Security benefits increasing in 2022

A lot of it has to do with the inflationary environment that we're in right now. That was brought on by Copenhagen. Frankly, we had the economy shut down for so long that we had this really big demand.

So how much more can you expect in your pocket? The Cola amounts to about $92 a month for the average retired worker, according to Social Security Administration estimates. With the increase, the estimated average Social Security benefit for a retired worker will be $1,657 a month next year. But financial experts tell me the idea is not to see it as a windfall, but as an opportunity to not fall behind.

Social Security benefits increasing in 2022

This increase in the benefit is because the cost of living is going up.

Experts also say Social Security benefits are not intended to be your sole resource when you retire, reminding you to keep in mind your other expenses, too.

You'll likely also see a small increase in your Medicare premiums as well, making your net increase maybe just a little bit less than that $95 amount you might be expecting.

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