The ‘raise’ for Social Security Recipients Isn’t All It’s Made Out to Be for Seniors

From 2022 the Social Security recipients will notice a considerable increase in benefits. And the credit goes to inflation! It is said that this increase is the highest in 30 years. The American citizens have been divided into groups on the basis of which they will receive the cheques.

Senior citizens will receive a cost-of-living adjustment of almost 6% in 2022. As per the yearly custom the Social Security Administration considered the recent inflation and other factors and gave out its verdict on COLA. According to the final report, the retirees and other beneficiaries will get an increase of 5.9%!

6% Cost-of-living Increase to Social Security Could Be a Double-edged Sword (Updated News)

This program ensures that the citizens are being given some sort of financial assistance. It uses the tax paid by the economically productive population for the betterment of those who are underprivileged or retired. However, the new changes in the Social Security plan have raised several doubts. And this article will solve most of them. So, feel free to read on! 

The following list will give you a rough idea of the updates:

  • All retired workers will get an increase of $1625.
  • The aged couple will get an increase of $2734.
  • A widowed mother with two children will be getting an increase of $3160
  • An aged widower (alone) will get $1530.
  • A disabled worker with a spouse and no more than two children will get $2341.
  • All disabled workers will get a $1345 increase.

The $17,166 Social Security is not entirely beneficial for the retirees 

While the population is assuming that the 5.9% is a positive initiative they must be aware of the fact that this increase does not necessarily mean additional income. 

Social-security
Social-security

“Everything is 6% more expensive these days and is only the minimum needed to maintain the purchasing power that you’ve had all along,” Hubbard said.

Now if we talk about the retired population, they are not benefiting from the program like others. This is because of increased Medicare Part B premiums which the retirees have to pay for. The payment for this plan depends on the income of an individual. And as the COLA has increased similarly the cost of Medicare Part B premiums has also spiked. So, this cancels out all the benefits of COLA. 

Here is how much increase you can expect

To find the answer to this question you can also use your Social Security account. This site will show you how much you are currently receiving and the amount that you’ll start receiving in 2022. Once the COLA begins in January all of the recipients will get the newly updated cheques. 

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Why the 2022 COLA isn’t as beneficial as it appears to be

COLAs are always devised carefully with respect to inflation. Now if the social security costs are rising, the cost of basic necessities is also rising simultaneously. So the rising inflation has sadly countered the benefits of the new COLA. The main purpose of COLA is to prevent benefits from losing buying power. But unfortunately, in recent years, this task has not been fulfilled.

This social security cost is also affected by the stimulus checks. Want to know how? This article will guide you! (attach the article for Fourth stimulus check updates: tax return, Social Security raise, Medicare, Child Tax Credit)

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