Retirees may soon see a raise on their Social Security checks.
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The most significant cost-of-living increase in nearly four decades could be on the way next year for Social Security recipients.
Data shows that 88% of people who are 65 and older in the United States receive Social Security benefits, according to NBC News.
Each year, the Senior Citizens League, a nonpartisan advocacy group for older Americans, predicts the annual cost-of-living (COLA) change. In 2022, the organization says the COLA may increase to 6.2%.
The boost would be more significant than the 1.3% adjustment made for this year. In 2021, it was one of the lowest increases Social Security experienced.
According to the Social Security Administration, the organization won’t announce its subsequent annual cost-of-living adjustment until October 2021.
If you are curious about finding out your benefits, there is a reliable way to predict the number ahead of time by using the consumer price index. This tool measures the average change over time in the prices Americans pay for goods and services.
The advocacy group’s estimate is based on the consumer price index dated through August. However, the actual COLA change will be based on an average of July, August, and September dates.
What does the 6.2% increase mean for people’s benefits?
The average monthly retirement benefit recipient receives around $1,509 per month. When applying the 2021 COLA increase, it will raise the check to $1,603. That is an extra $94 per month or $1,123 for the entire year.
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