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Social security beneficiaries will receive an increase of almost 6% in benefits in 2022. This is the most important “to augment” in 30 years.
Of course, there is a downside: The increase is due to the highest inflation this country has seen in decades.
Food products of all kinds. Gasoline. Various services. Hygiene products. Construction materials.
The cost of many everyday items is on the rise and consumers are feeling it.
But let’s focus on the cost of living adjustment or COLA that millions of Americans will receive.
The COLA is an additional $ 92 per month for the average retired worker, according to Social Security Administration estimates.
This is a sudden break from a long lull in inflation that has seen cost-of-living adjustments averaging just 1.65% per year over the past 10 years.
With the increase, the estimated average Social Security payment for a retired worker will be $ 1,657 per month next year. The benefits for a typical couple would increase from $ 154 to $ 2,753 per month.
Keep in mind that about half of the elderly live in households where Social Security provides at least 50% of their income, and a quarter depend on their monthly payment for all or almost all of their income.
Social Security was created to promote the economic security of eligible Americans. The program works by using taxes paid into a fund by workers to provide benefits to eligible people.
It is referred to as a “Eligibility program” but active people help themselves in retirement by having contributed to it, while others who are unable to work due to sickness, disability, maternity or work accident may receive benefits.
For the working class, the more you contribute, the more benefits you can receive (up to a limit).
It should be so.