Good News! SSI Will Increase in 2022 Due to a Cost of Living Adjustment
You may have noticed that the cost of living has risen in the past year. Some expenses have increased by as much as 5.3%!
Gasoline prices rose to $3.42, and the cost of groceries increased by 2.1%. Eating out has gotten more expensive, too, rising by 3.3% from 2020-21. The bad news is, it doesn’t look like inflation will be subsiding anytime soon.
Inflation has made it hard for people on SSI to keep up with their bills. Thankfully, the social security administration has become aware of this struggle and has acted to help those on SSI in the coming year.
An Increase in Benefits
To adjust for the increase in the cost of living expenses, the SSI benefits will increase by 5.9% on December 30, 2021.
This is one of the largest increases in the past twenty years, followed by a 5.8 percent COLA in 2008. Several years in the past two decades have seen a 0% COLA as there was minimal inflation or a decrease in the cost of living expenses those years.
For more details on the history of COLA, check out the table in this article.
If you are one of the approximately 70 million Americans who will receive these benefits, you might be wondering what this means for you.
On average, most people receive an SSI benefit of $794 a month. That average will increase by $47, for a total of $841 per person per month. If you receive Social Security along with SSI, you will see an increase in both to account for COLA (cost of living adjustment).
For couples, the standard SSI payment will increase from $1,191 to $1261, an increase of $70.
Social Security benefits for disabled workers will increase from an average of $1,282 to $1,358, and for those with a spouse and one or more children, it will increase from $2,250 to $2383.
Retired workers will average $1,657 income instead of the $1,565 average from 2021.
To see a more extensive list, take a look at the SSA’s COLA fact sheet.
Where is the Money Coming From?
You may be concerned about where the money for additional payments will come from. To adjust for the increase in the cost of living, the SSA will be taking a larger social security tax from wage earners and employees.
They are increasing social security tax by 2.9% to 6.2% for both employees and employers. Those who are self-employed will have to pay both, for a total of 12.4% tax on their income.
Do I Need to Do Anything?
The COLA will go into effect automatically, and you should start receiving a higher payment from December 30, 2021 onward. If you don’t, you need to get in touch with the SSA.
You should be able to view a notification in December on your my Social Security account indicating the COLA and when it will take effect. If you do not have a my Social Security account, you can create one.
We can help you understand your benefits better and help you check that you are receiving the correct amount.
Contact Lowery Law Group at firstname.lastname@example.org or call (843) 991-0733. There is no fee for a free consultation regarding your claim. Lowery Law Group is experienced in handling cases in South Carolina as well as Georgia.