Social Security‘s latest update is not a simple one since it benefits millions of Americans. The figure is impressive because they are roughly 70 million Us citizens that can get more money than what they do now. This is a huge lump sum if we put all this money together. Therefore, Social Security and the US government are making a considerable effort to help people make ends meet.
Not only will Social Security benefits increase up to 8.7%, but also Supplemental Security Income. It is true that some beneficiaries will get more money than others, depending on what they receive from Social Security. However, the average beneficiary will get about $140. This is quite a lot of money since most people who receive these benefits usually have a low income.
According to the American Association of Retired Persons or AARP, the average pension for retirees in May 2022 was close to $1,670 per month. So, this is not a large amount of money taking into consideration the prices of every single thing which is necessary. Mortgages rate interest has gone up, and gas and electricity prices are exorbitant too. Thus, getting by is more than ever a survival routine for many.
Why has Social Security boosted retirement benefits by 8.7%?
COLA or cost-of-living adjustment is to blame for the increase in pensions. As prices went up on average 8.7%, so will the retirement benefits or SSI benefits. It is a way to catch up with the fast-growing inflation due to the current global situation. Social Security needs to look after the retirees and their purchasing power. Otherwise, they would be poorer and they would not be able to stand these prices.
Some people ignore that COLA can make their benefits grow bigger since this is the biggest change in over 40 years. Despite the fact that Social Security announced the rise in benefits on October 13, it has not been paid yet. Many experts had already predicted this update. They had seen that the CPI or Consumer Price Index for Urban Wage Earners and Clerical Workers was 8% or more most of the time.
In case you are already wondering when the extra money will be in your bank account, the new payment is due in January 2023 for Social Security benefits. SSI beneficiaries will probably get it from December 30, 2022. From the very beginning of December, Social Security will send notices so that beneficiaries can see the new amount they are to get. If you would like to have a look at it by yourself, rather than wait till you get the information, you can check my Social Security account.