Millions of retirees on Social Security will get a 5.9% boost in benefits for 2022. The biggest cost-of-living adjustment in 39 years follows a burst in inflation as the economy struggles to shake off the drag of the coronavirus pandemic.<\/b>
\nMillions of retirees on Social Security will get a 5.9% boost in benefits for 2022. The biggest cost-of-living adjustment in 39 years follows a burst in inflation as the economy struggles to shake off the drag of the coronavirus pandemic. The COLA, as it\u2019s commonly called, amounts to an added $92 a month for the average retired worker, according to estimates Wednesday from the Social Security Administration. It\u2019s an abrupt break from a long lull in inflation that saw cost-of-living adjustments averaging just 1.65% a year over the past 10 years. With the increase, the estimated average Social Security payment for a retired worker will be $1,657 a month next year. A typical couple\u2019s benefits would rise by $154 to $2,753 per month. But that\u2019s just to help make up for rising costs that recipients are already paying for food, gasoline and other goods and services. \u201cIt goes pretty quickly,\u201d retiree Cliff Rumsey of South Carolina said of the cost-of-living increases. The COLA affects household budgets for about 1 in 5 Americans. That includes Social Security recipients, disabled veterans and federal retirees, nearly 70 million people in all. For baby boomers who embarked on retirement within the past 15 years, it will be the biggest increase they\u2019ve seen. AARP CEO Jo Ann Jenkins called the government payout increase \u201ccrucial for Social Security beneficiaries and their families as they try to keep up with rising costs.\u201d Policymakers say the adjustment is a safeguard to protect Social Security benefits against the loss of purchasing power, and not a pay bump for retirees. About half of seniors live in households where Social Security provides at least 50% of their income, and one-quarter rely on their monthly payment for all or nearly all their income. \u201cYou never want to minimize the importance of the COLA,\u201d said retirement policy expert Charles Blahous, a former public trustee helping to oversee Social Security and Medicare finances. \u201cWhat people are able to purchase is very profoundly affected by the number that comes out. We are talking the necessities of living in many cases.\u201d This year\u2019s Social Security trustees report amplified warnings about the long-range financial stability of the program. But there\u2019s little talk about fixes in Congress, with lawmakers\u2019 consumed by President Biden\u2019s massive domestic legislation and partisan machinations over the national debt. Social Security cannot be addressed through the budget reconciliation process Democrats are attempting to use to deliver Biden\u2019s promises. Social Security\u2019s turn will come, said Rep. John Larson, D-Conn., chairman of the House Social Security subcommittee and author of legislation to tackle shortfalls that would leave the program unable to pay full benefits in less than 15 years. His bill would raise payroll taxes while also changing the COLA formula to give more weight to health care expenses and other costs that weigh more heavily on the elderly. Larson said he intends to press ahead next year. \u201cThis one-time shot of COLA is not the antidote,\u201d he said. Although Biden\u2019s domestic package includes a major expansion of Medicare to cover dental, hearing and vision care, Larson said he hears from constituents that seniors are feeling neglected by the Democrats.<\/p>\n