Social Security benefits in the United States will increase 5.9% next year – the biggest jump since 1982.
In the United States, Social Security benefits and Supplementary Security Income will increase 5.9% in 2022, the largest increase since 1982, the Social Security Administration said on Wednesday.
More than 64 million U.S. pensioners receiving benefits will receive the increased payments from January to offset the rising cost of living, the administration said.
The higher monthly payments come as consumer prices in the United States continue to rise steadily. Prices paid by US consumers rose 5.4% in September from the previous year, the largest annual increase since 2008. The CPI for urban and office workers, used to calculate adjustments at the cost of living, increased by 5.9% compared to the previous year.
“While this increase will help current beneficiaries weather current inflation, we must remember that the long-term retirement security of the elderly depends on the willingness of lawmakers to act now to shore up Social Security finances. to avoid a potential widespread reduction in benefits if trust funds run out, ”said Jason Fichtner, chief economist at the Bipartisan Policy Center, in a note.
The higher cost of living payments could deplete the program’s trust fund a year earlier than expected, according to an October report from the Committee for a Responsible Federal Budget.
–With help from Alex Tanzi.