WASHINGTON (AP) – Millions of retirees on Social Security will receive 5.9 percent benefits for 2022. Global epidemic.
The COLA, as it is commonly called, is ڈالر 92 a month for the average retired worker, according to estimates released Wednesday by the Social Security Administration. This represents a long-term abrupt break in inflation, which has seen an average cost adjustment of 1.65% over the last 10 years.
With the increase, the estimated average Social Security payment for a retired worker next year will be 65 1,657 per month. The average couple’s benefits will increase from 15 154 per month to 75 2,753.
“It’s moving very fast,” said retired Cliff Ramsey, adding that he has seen an increase in the cost of living. After a career in sales for a well-known steel manufacturer, Ramsey Hilton lives near Head Island, South Carolina. At home, he takes care of his wife, Judy, who is about 60 years old and has Alzheimer’s disease. Since the corona virus epidemic, Ramsey said he has noticed rising food prices, wages paid to caregivers who occasionally spell it out, and personal care products for Judy, energy. Not to mention the costs.
COLA affects 1 in 5 Americans’ household budgets. This includes about 70 million Social Security recipients, disabled veterans and federal retirees. For baby boomers retiring in the last 15 years, this will be the biggest increase they’ve seen.
“It’s welcome,” said Marie Johnson, an analyst with the Neutral Senior Citizens League Advocacy Group. “But what we’re hearing is that despite the COLA, purchasing power will still be lost because prices are still rising.”
Policymakers say the COLA was designed to protect the benefits of social security against the loss of purchasing power in a changing economy, not a payroll for retirees. About half of the elderly live in households where Social Security benefits provide at least 50 percent of their income, and a quarter depend on their monthly payments or all of their earnings.
“Regardless of the size of the COLA, you never want to downplay the importance of the COLA,” said Charles Bluhos, a retirement policy expert, a former public trustee who helps oversee social security and Medicare finance. “What people can buy is greatly influenced by the number that comes up. In many cases, we are talking about the necessities of life.
This year’s Social Security trustees have raised warnings about the program’s long-term financial stability, but President Joe Biden’s large-scale domestic agenda legislation and the use of biased measures on national debts have drawn the attention of lawmakers. There has been little talk of reform in Congress. Democrats are trying to use Biden to deliver on his promises that social security cannot be addressed through the budget reconciliation process.
John Larson, chairman of the House Social Security subcommittee and author of the legislation, said it would be Social Security’s turn. The bill would increase payroll taxes and change the COLA formula to cover healthcare costs and other costs that are heavier on the elderly. Larson said he plans to push forward next year.
“This one-shot shot of cola is not an antidote,” he said.
Although Biden’s home package includes a major expansion of Medicare for dental, hearing and vision care, Larson said he hears from those circles that seniors are being ignored by Democrats.
“In town halls and tele-town halls, they’re saying, ‘We’re really happy with what you did on the child tax credit, but what about us?’ In the midterm elections, this is a very important constituency.
The COLA is only part of the annual financial equity for seniors. Announcement of Medicare Part B Premium for Outpatient Care is expected soon. This is usually an increase, so at least any Social Security increase is for health care. The Part B premium is $ 148.50 per month, and the Medicare Trustees report estimates an increase of 10 10 for 2022.
Economist Marilyn Moon, who has also served as public trustee for Social Security and Medicare, said she believes the current rise in inflation is an adjustment to extremely unusual economic conditions and a way to control prices. Will restore itself over time.
“I think there will be an increase this year that you won’t see again in the future,” Chand said.
Policymakers should not delay working on retirement programs.
“We’re at a point where people don’t respond to policy requirements until they feel frustrated, and both Social Security and Medicare are programs that benefit from long-distance planning,” he said. Rather, they take advantage of short-term measures. ” .