Social Security recipients are about to get their biggest pay rise of 5.9% since 1982, and will begin to hit their bank account come January 2022. But although 5.9% seems high, will it amount to anything for those getting it?
Under usual circumstances 5.9% seems like a healthy bump, but we’re living in anything but usual times, and when you take into consideration the COVID-19-fueled spike in inflation after years of paltry consumer price increases, those receiving social security benefits will barely even notice the raise.
— WBRZ News (@WBRZ) October 13, 2021
For the average retiree who got a monthly check of $1,565 this year, the bump means an additional $92 a month in 2022, boosting the typical payment to $1,657.
At the same time, older Americans will still face sharply higher costs for some goods and services, including food, rent and prescription drugs. Seniors also could be socked by a 21% to 25% surge in home heating oil and natural gas costs this winter, according to the league and the U.S. Energy Information Administration.
And as it normally, does, Medicare will go up and eat up most of that raise.