Social Security COLA largest in decades as inflation jumps

·1-min read
Social Security Cost of Living (Copyright 2021 The Associated Press. All rights reserved.)
Social Security Cost of Living (Copyright 2021 The Associated Press. All rights reserved.)

Millions of retirees on Social Security will get a 5.9% boost in benefits for 2022. The biggest cost-of-living adjustment in 39 years follows a burst in inflation as the economy struggles to shake off the drag of the coronavirus pandemic.

The COLA, as it's commonly known, amounts to $92 a month for the average retired worker, according to estimates released Wednesday by the Social Security Administration. That marks an abrupt break from a long lull in inflation that saw cost-of-living adjustments averaging just 1.65% a year over the last 10 years.

With the increase the estimated average Social Security payment for a retired worker will be $1,657 a month next year. A typical couple’s benefits would rise $154 to $2,753 per month.

The increase affects household budgets for about 1 in 5 Americans nearly 70 million people, including Social Security recipients, disabled veterans and federal retirees.

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