Approximately 70 million Americans will see their Social Security and Supplemental Security benefits increase by nearly 6 percent next year, the Social Security Administration announced this week.
Americans aged 62 or older who have 40 credits (around 10 years of work) can start applying for Social Security retirement benefits. Supplemental benefits also provide aide to individuals who have conditions that may make it difficult to find employment.
On average, those who receive benefits will get a Social Security payment of $1,657 with the increase, up around $92 compared to last year. Supplemental Security recipients will see the first increase on December 30 and Social Security recipients will receive their first increased check Jan. 22 of next year.
This is the biggest boost to the payouts in the past 40 years. It comes along with a Cost of Living Adjustment and rising costs of food, rent and other goods due to inflation. Last month the Department of Labor’s Consumer Price Index, went up 5.4 percent compared to the previous 12-month period, and this is tied to the adjustment.
While the increase sounds like welcome news, some experts warn that it will hardly make up for the rising costs of living.