The social security cost of living is updated around this time of year, as it is every year. The official decision will be made in December, just before the new year, but this update provides the public with a thought of what to expect.
Based on data from May, the Senior Citizen League estimates the adjustment to be 5.3 per cent. However, by the end of April, this adjustment had dropped to 4.7 per cent. Based on this information, the social security increase will be between 4.7 and 5.3 per cent. However, four months of data must still be analysed before the official estimate for next year can be determined. However, just what the portion is, it will be the maximum since 2009. This year, it was 1.3 per cent, so we can simply check how much of a gap there may be.
How Much Should Your Social Security Dividend Boost?
With the cost of living increasing in 2021, we will see a much bigger boost in 2022 than we did in 2021.
So, how will Social Security look in 2022 with a 5.3 per cent increase?
This is how it works:
- All retired workers will receive a $1625 raise.
- The elderly couple will receive a spike of $2734.
- A widowed mother with two children will receive a $3160 raise.
- An elderly widower (on his own) will receive $1530.
- A disabled worker with a spouse and up to two children will receive $2341.
- All disabled workers will receive a $1345 raise.
- Then it’ll be hugely advantageous to lower-income people.
All of the above estimations are a number of assumptions attributes, so the exact COLA upsurge will be centred on such figures. These pensions will mean a major increase, particularly if the country intends to keep pace with inflation. So, when we assess all of these figures from past years, we can see that people will profit more than anyone in the coming year. To figure out the actual COLA increment, we may have to allow time until October, when all pertinent projections will be finalised.
Will the increase really be ‘beneficial’?
Well to answer that, we have bad news for you. Our inflation cost is measured by the Bureau of Labor Statistics Consumer Price Index, and this year’s inflation trend is estimated to be huge. At the end of May, the annual rate of inflation in the United States was 5%. This is the highest rate since 1981 when the annual average was 10.3%. That implies your bonus would go toward higher pricing for the products and services you’ll be buying. Cost of living rises are supposed to balance out increases in goods and services, but the increases we’re witnessing at the grocery store, petrol stations, and in the housing market are far greater than the CPI inflation rate. The most significant increase was in the price of gasoline, which increased by 56.2 percent from May 2020 to May 2021. Bacon has increased by 13%, citrus fruits have increased by 9%, and milk has increased by 7.2 per cent.
In that one year, used automobile and truck prices increased by 29.7%.
Prices for other everyday things have also risen. So technically, the paycheck you will get with an increased amount, would ultimately be wasted spending on inflated goods and services. As you’ll see, all of those rising prices are larger than that of the CPI inflation rate by a significant margin.
At the very least, you’ll get a bonus to help balance the genuine high inflation rate you’re experiencing. The rise will not begin until January 1, 2022, once the COLA rate is decided.