Social Security recipients will receive a 5.9% increase in benefits in 2022—the largest rise in 39 years, the agency announced— due to Cost of Living Adjustment (COLA), caused by the 5.4% annual inflation rate reported this morning, the highest rate since the 2008 recession.
COLA rose just 1.3% in 2020, and the 5.9% increase represents the largest jump since 1982.
The COLA announcement came just moments after the Labor Department announced a larger than expected .4% increase in consumer prices last month, reflecting a 5.4% rise in consumer prices over the last year.
Through the Social Security Act, benefits from the Social Security Administration are adjusted annually based on the Consumer Price Index.
$92. That’s how much the average monthly Social Security payment will increase by month in 2022.
AARP CEO Jo Ann Jenkins told the Associated Press that the COLA increase will be “crucial for Social Security beneficiaries and their families as they try to keep up with rising costs.”