Social Security benefits will rise 5.9% in 2022
By Mohammed Hadi
Social Security benefits will increase 5.9% in 2022, the Social Security Administration said Wednesday, an increase that applies to about 70 million Americans.
The increase, a cost of living adjustment, comes as consumer prices in the United States have seen their sharpest increase in years. The adjustment is tied to the Labor Department’s Consumer Price Index, which rose 5.4% in September, from a year earlier.Inflation jumped early in 2021 as prices for airfares, restaurant meals and apparel recovered after slumping as the economy locked down during the depths of the pandemic. That was expected. But more recently, prices have continued to climb as supply shortages mean businesses can’t keep up with fast-rising demand. Factory shutdowns, clogged shipping routes and labor shortages at ports and along trucking lines have combined to make goods difficult to produce and transport.
The adjustment is the largest in four decades, AARP chief executive Jo Ann Jenkins said in a statement following the announcement.
“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,” Jenkins said.