On October 13, 2021, the Social Security Administration announced a 5.9% benefit increase for 2022. This cost-of-living adjustment (COLA) will be the biggest COLA adjustment since the 1980s with last year’s adjustment being only 1.3%. The adjustment reflects this year’s surging inflation as a result of the COVID-19 pandemic.
Beginning in January of 2022, 64 million Social Security beneficiaries will see their increase. For SSI beneficiaries, the cost-of-living adjustment will begin on December 30, 2021. The average Social Security benefit will increase by $92. For SSI recipients, the federal maximum will increase from $794 to $841 a month for individuals and from $1,191 to $1,261 for couples. The changes to Medicare premiums have not yet been announced.