October 18, 2021
Social Security Benefits Will Increase by Almost 6 Percent in 2022
Social Security beneficiaries, disabled veterans and federal retirees will see their earned benefits increase by 5.9% in January, marking the largest increase in almost four decades. The cost-of-living adjustment (COLA) will amount to an additional $92 a month for the average retired worker.
“The members of the Alliance are relieved that the nation’s nearly 65 million Social Security beneficiaries can expect a significant COLA increase in 2022 after decades of miniscule increases,” said Richard Fiesta, Executive Director of the Alliance. “However, as welcome as this news is, too many older Americans will continue to struggle to make ends meet,” he continued.
“We are calling on Congress to pass President Biden’s Build Back Better Act and include a provision allowing Medicare to negotiate the cost of prescription drugs in the package and lower the amount that beneficiaries are paying at the pharmacy counter.”
“The savings from these negotiations should be used to add guaranteed Medicare dental, hearing and vision benefits,” Fiesta added.
Congress could also increase benefits by making the wealthiest Americans pay their fair share and remove the artificial earnings cap that is currently $142,800 per year. The cap will increase to $147,000 in 2022. This change would strengthen the Social Security Trust Fund while providing all retirees with increased benefits.
In addition, the Alliance is continuing to press Congress to require that COLAs be based on the CPI-E, the Consumer Price Index for the Elderly. The CPI-E reflects health care and housing costs, things that seniors actually spend their money on, and this change will result in fairer COLAs every year, not just every few decades.