Social Security Will Increase Significantly in 2022

By: Stacey Nickens

Retirees will see a large increase in their Social Security benefits in 2022.

Last week, the Social Security Administration announced that the cost-of-living adjustment will be 5.9% in the upcoming year. However, seniors should keep in mind that benefits are increasing because inflation is increasing. Energy prices are on the rise, impacting gas and electricity prices. Increased demand and chip shortages have driven up used car and truck prices. Similarly, appliances, TV’s, and other furniture are seeing price increases. With worker shortages, restaurants and barbers raised wages and prices. Finally, airfares and hotel rates are beginning to return to their pre-pandemic levels.

A 5.9% benefit increase is the largest since 1982, when benefits rose 7.4%.

Seniors may see an increase in their benefit as an opportunity to increase their spending. However, please remember that this bump is coming because prices are on the rise. Seniors are likely to see their current lifestyle become more expensive. With that said, it is likely prudent to stick to your current budget, even with your benefits on the rise. Saving a little extra is always better than spending more than you can afford.