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2022 Social Security COLA Largest in Nearly 40 Years



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The Social Security Administration (SSA) announced Wednesday that the nearly 70 million recipients will see a cost-of-living adjustment (COLA) of 5.9% in 2022, the largest increase since 1982. SSI recipients will start receiving their first increase on December 30, 2021. Regular Social Security beneficiaries will see their first check beginning in January 2022.

This year’s bump is more than 4.5 times last year’s 1.3% increase. The difference shows up in estimated increases in monthly benefits. The 1.3% increase in 2021 resulted in an average rise in monthly benefit checks of just $20. This year’s 5.9% COLA will net the average recipient $92 per month or just over $1,100 in 2022. The last time beneficiaries saw a COLA this large was in 1982 when the increase amounted to 7.4%.

Key Takeaways

The 2022 Social Security COLA will be 5.9%, the highest in nearly 40 years.The average recipient will see a $92 monthly increase over 2021.While the upcoming COLA helps mitigate 2021’s 5.9% increase in the CPI-W, it is subject to further erosion by risi …

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