Social Security benefit increases are coming in 2022

As inflation pushes up prices, the government will offer raises for 70 million recipients, boosting retiree benefits to $1,657 per month.

Marcos Cabello
Based in Boston, Marcos Cabello has been a personal finance reporter for NextAdvisor and CNET. Marcos has covered cryptocurrency, investing, banking, and the US economy, among other personal finance subjects. If you don't find Marcos behind his computer screen, you'll probably find him behind another screen, playing the newest Nintendo Switch title, streaming the latest TV show or reading a book on his Kindle.
Marcos Cabello
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Recipients of Social Security benefits are getting a raise next year. Social Security and Supplemental Security Income benefits are set for their largest increase since the 1980s, according to a Social Security Administration announcement. Approximately 70 million Americans will see a bump, starting with roughly 8 million SSI beneficiaries on Dec. 30, 2021, and the remainder in January 2022.

This Cost-of-Living Adjustment, or COLA, will increase payments by 5.9%. Retirees will receive about $92 more per month or $1,104 more for the year. Rising inflation and its impact on the price of consumer goods in the US are driving the increase -- which is considerably higher than the average annual increase of 1.6% during the past 10 years. The cost of goods and services has gone up 5.4% since last September, according to the US Bureau of Labor Statistics' Consumer Price Index.

Social Security and SSI beneficiaries should expect a letter in December detailing their new benefit amount. Most beneficiaries should be able to check the status of their specific COLA through their online Social Security account