The U.S. Social Security Benefits will be increasing by the most since 80s.
The Social Security Administration announced Wednesday that U.S. Social Security Benefits for over 70 million Americans would increase by 5.9% next year.
This is the most significant annual increase in nearly four decades due to the run-up of inflation.
While most recipients will see their payments increase in January, a smaller pool of beneficiaries will begin receiving more extensive checks in December.
Monthly payment of $1657 will be received by the average Social Security retirement benefit recipient next year, compared to $1,565 in 2021. This is an increase of $92 per month.
This is the most considerable cost-of-living adjustment (or COLA) since the 1982 7.4% increase for benefits in the following year.
This is four times more than the 1.3% increase that beneficiaries saw in this year’s benefits.
Each year, the Consumer Price Index’s third-quarter annual increase is used to determine the COLA.
The Labor Department released Wednesday’s data showing that the CPI for September increased by 5.4% compared to a year ago, which is the highest inflation rate since 2008.