In 1972, Congress passed legislation to provide automatic increases linked to a rise in consumer prices. Recipients would no longer have to wait for Congress to take action to receive an increase. The first automatic increases to Social Security benefits took effect in 1975. After 1982, cost of living adjustments (“COLAs”) were effective for December of each year and received by beneficiaries in January. Legislation enacted in 1973 provides for cost-of-living adjustments, or COLAs. With COLAs, Social Security and Supplemental Security Income (SSI) benefits keep pace with inflation.
Last week the Social Security Administration (SSA) announced that the nearly 70 million recipients will see a COLA of 5.9% in 2022, the largest increase since 1982. Listed below are some of the notable changes that will take effect in January 2022 for Social Security recipients –
- The average individual retired Social Security beneficiary is expected to see a monthly benefit jump from $1,565 to $1,657, an increase of roughly $92 per month or $1,104 for the year.