Social Security Benefits are Going Up – Here’s How to Figure Out How Much More You Will Get

Next year’s Social Security benefits will be the biggest in years. The Cost-of-Living Adjustment (COLA) for 2022 is 5.9%, due in a large part to the high inflation we are experiencing because of the pandemic. But how exactly will this impact the average Social Security recipient?

According to AS.com, beginning in January the average retired worker will receive $92 more each month, which would mean a benefit check of $1,657 each month. The maximum monthly payment will be $3,345. The article says beneficiaries can figure out how much money they will get next year by taking the gross amount they receive each month, before deductions such as taxes and Medicare, and multiplying it by 1.059. 

The 2022 COLA was high, but not high enough to match the rising cost of common goods and services. The Seniors Trust believes the Social Security COLA should be calculated using the Consumer Price Index for the Elderly (CPI-E) not the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) currently used. That’s because the CPI-E takes into the unique spending habits of seniors which includes more money spent on healthcare and medicine.

If the Social Security Expansion Act is passed, it would improve the way the Social Security COLA is calculated by adopting the CPI-E. The landmark bill would also provide bigger monthly benefits and secure the long-term solvency ensuring Social Security is around for generations to come.