2022 social security increase5/29/2023 ![]() ![]() This index surveys the spending patterns of younger working adults under the age of 62 and doesn’t include the households of people who are retired. Under current law, the Social Security COLA is determined by the percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). ![]() In 2017 the COLA was almost zero, just 0.3 percentage point. Inflation was so low that no COLA was payable at all in 2010, 2011, and 2016. Since 2010, COLAs have averaged just 1.4%. That has not been the case for many of the past 12 years when cheap gasoline, and other falling prices dragged down the COLA. That works to the advantage of retired and disabled beneficiaries for the COLA payable in January of 2022. “Higher gasoline and transportation prices in particular are behind the high COLA estimate for 2022, because those expenditures are given greater weight or importance in the consumer price index (CPI) that’s used to calculate the COLA. “With the July and August consumer price data, inflation is plateauing,” Johnson says. The chances of the data dropping to 6 percent are twice that high, 20 percent. “Although my calculator indicates the COLA could be 6.1 percent, the chances of inflation remaining high enough for that to occur is only 10 percent based on 20 years of historic trends. “Based on the new data through August, there’s a downward inflation trend,” Johnson says. “The inflation patterns, caused in large part due to the COVID-19 pandemic, were unprecedented in my experience,” she says. “This year is particularly difficult to forecast with certainty,” Johnson says. “Our forecast is based on CPI data through August, and there is still one more month of consumer price data to come in before we get the official announcement in October, says Mary Johnson, Social Security policy analyst for The Senior Citizens League. ![]() The COLA that becomes payable in January of 2022 would be the highest since 1982. Medicare Choice Group is here to help at (855)-482-0574 or online.(Washington, DC) – Social Security recipients are likely to get an annual cost of living adjustment (COLA) of 6 to a 6.1 percent in 2022, according to The Senior Citizens League (TSCL). To learn if the 2022 COLA increase could impact your health coverage, we recommend connecting with our team to discuss your personal situation. Does This Change to Social Security Affect Medicare Coverage or Costs? If your income should go down for any reason, contact the Social Security Administration as you may be eligible for reduced Medicare Part B. In some situations, it might make sense reducing withdrawals from other taxable accounts. You may have already noticed the change in your monthly checks, but if not you can access your information online through a My Social Security account.Īdditional income may also mean higher taxes for some, since many people receiving Social Security have more income from investments, 401k plans or individual retirement accounts. To put the record increase in perspective, 2021’s benefits increased by only 1.3 percent. This year’s cost-of-living adjustment (COLA) marks the biggest annual increase in nearly 40 years to account for the rising prices of everyday goods and services. The Social Security Administration has announced that Social Security beneficiaries will receive a 5.9% increase in their benefits in 2022 to accommodate the changing cost of living. ![]()
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