Will Your Social Security Benefits Increase in 2021–2022?

 

The cost of living has gone up significantly in the last decade. Inflation is at a six-year high, and prices are expected to continue to rise as we head into 2022. If you're wondering how your retirement savings will be affected, it's worth knowing that social security benefits may also increase.

Why Your Social Security Benefits May Increase In 2021–2022?

The Social Security Administration has announced that there will be an increase in benefits for retired workers. It's good news, especially since the retirees have not seen a cost-of-living adjustment (COLA) since 2009. The average retiree will see roughly $45 more per month starting in January 2021 and 2022. While this may seem minuscule, it can make a difference to those on fixed incomes or who live solely off their monthly social security payment.

Annual cost-of-living adjustments, or COLAs, are based on the increase in a given year's average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI measures the change in food, housing, clothing, transportation, and energy prices. The CPI-W measures the price change for urban wage earners and clerical workers, considered "working people." The Social Security Administration (SSA) uses the price index's average to determine whether there has been a cost-of-living increase. If there has been, the SSA will update the benefit payments accordingly.

Changes in Payout Policies

In 2022, Social Security benefits and Supplemental Security Income (SSI) payouts will increase by 5.9% for over 70 million Americans. When the cost of living rises, as determined by the Consumer Price Index of the Department of Labor, federal benefit rates climb as well.

If you're already collecting Social Security benefits, this means that your benefits could go up in the coming years. You can estimate your retirement benefit payment by using the SSA's online calculator. Many people base their projected benefits on their earnings history but remember that your benefits are based on a complex formula.

Since the SSA updates its benefit payment amount to reflect the CPI-W in Oct-Dec, you'll know your 2020 and 2021 benefits by the end of the current year.

Legal Advice

While we can't predict the exact changes that you'll see in the coming years .A professional lawyer can help you deal with social security issues. If you're already on track with your retirement savings plans, feel free to contact The Law Office of Lisa Douglas. They will answer any questions you have about your Social Security benefits. Lisa Douglas has helped many people with their social security claims. Let them know if you have any. Having an experienced social security attorney or disability lawyer on your side will help ensure that your claim is processed quickly and efficiently.

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