The one upside to surging inflation is that those getting some government checks will see bigger payments, with Social Security announcing a 5.9% cost-of-living adjustment Wednesday.
It’s the largest increase since 1982, when the country was still emerging from the inflationary years of the late 1970s.
Advocates for Social Security said the benefit hike is desperately needed as those on fixed incomes face huge challenges making ends meet amid soaring prices.
“Today’s announcement of a 5.9% COLA increase, the largest increase in four decades, is crucial for Social Security beneficiaries and their families as they try to keep up with rising costs,” said the AARP.
The increases will start for some recipients at the end of December and others in January, depending on the type of Social Security benefit.
Social Security’s payroll tax ceiling also will rise next year, meaning the first $147,000 of income will face the 6.2% levy on individual income. That’s up from $142,800 this year.
Under the law, Social Security’s payments are tied to the Consumer Price Index, a Labor Department yardstick for inflation.