Social Security announces largest increase in 40 years
ROCHESTER, N.Y. (WHEC) — If you’re on Social Security, you’ll see a big bump in your checks come 2022. The Social Security Administration announced Wednesday that the annual cost of living will be upped by about 5.9%, the largest increase in 40 years.
For the roughly 70 million people, who receive Social Security, depending on your income, you could be seeing close to an extra hundred bucks on top of what you already get.
"The average person receiving social security, their benefit is approximately $1,500 a month so about a $90 increase for next year, per month,” said Manning & Napier Financial Advisor Craig Houck.
The adjustment is based on how the economy’s wheels are turning.
"The consumer price index, number that is designed to gauge spending levels, so when they look at the current basket of goods that, that represents, as we’re all experiencing at the grocery store, at the gas pump, it’s costing a lot more,” Houck said.
Social Security is used for various reasons, maybe you’re on disability, or you’re retired. If you receive other government benefits too, you won’t lose them but the cost of the service could go up.
"Any program that’s income-based will be impacted going forward, so on one hand it’s an increase that we will receive in our social security checks but on the other hand there’s a conundrum because that basket of services is also increasing,” Houck added.
Experts say an adjustment is made based on numbers from the year prior, so looking ahead into 2023, the nearly 6% increase could stay.