COLA Saw A Large Increase This Year
COLA Saw A Large Increase This Year
Last year, the Social Security Administration (SSA) officially announced that Social Security recipients now receive a 5.9 percent cost of- living adjustment (COLA) for 2022, the largest increase in four decades.
This adjustment began on January 1st, with benefits payable to more than 64 million Social Security beneficiaries. Additionally, increased payments to more than 8 million Supplemental Security Income (SSI) beneficiaries began on December 31, 2021.1
Biggest COLA Increase in Decades?
While many predicted a bump of as much as 6.1% given recent movement in the Consumer Price Index (CPI), the announced 5.9% increase is still substantial. Some fear that rising consumer prices may dilute the impact of the increase with inflation currently running at more than 5 percent. While this remains to be seen, Social Security beneficiaries will no doubt welcome the largest adjustment in many years.1
How You Will Be Notified
According to the Social Security Administration, Social Security and SSI beneficiaries are usually notified about their new benefit amount by mail. However, if you’ve set up your SSA online account, you will also be able to view your COLA notice online through your “My Social Security” account.1
Next Steps?
If this increase surprises or concerns you, don’t hesitate to reach out for guidance about changes to any of your sources of retirement income.
1SSA.gov, October 13, 2021
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