SOCIAL Social Security payments are increasing in 2022 – but that may not be so valuable given the steep rise in costs since the start of the coronavirus pandemic.
In January, Social Security claimants will see the average benefit amount increase by $ 92 – from $ 1,565 to $ 1,657 per month, according to the Social Security Administration.
For a typical couple, benefits will drop from $ 2,599 to $ 2,753 per month.
Indeed, the new cost of living adjustment (COLA) is expected to climb to 5.9%.
While this sounds good, it may not be ideal for many older people. For one reason: inflation, which has been rising steadily in recent months.
The latest inflation data from the Bureau of Labor shows that consumer prices rose 5.4% in the year through September.
COLA is designed to increase income in order to keep up with the cost of living.
We explain five price increases that could offset the value of your Social Security checks.
Food, accommodation and fuel
Due to high demand and low inventory, everything from electronics to other household necessities has become more expensive.
According to Moody’s Analytics chief economist Mark Zandi, median households spend an additional $ 175 per month on shelter, fuel and food.
“That’s the equivalent of a full grocery, electric or cell phone bill,” said Mark Zandi, chief economist at Moody’s Analytics. New York Post.
Typically, the median household income is around $ 70,000.
While they weren’t expensive enough before the pandemic, the prices of prescription drugs have also gone up.
According to a report from the AARP Public Policy Institute, the prices of 260 commonly used prescription drugs increased an average of 2.9%.
One way they can come down is if President Joe Biden’s Build Back Better program passes, which includes a provision that would allow Medicare to negotiate prices with drug makers.
But a key vote on the bill is expected to include Democratic Senator Kyrsten Sinema, who may oppose it.
Ms. Sinema has reportedly raised $ 1.1 million from the pharmaceutical and financial industries.
Otherwise, we’ve explained five ways to save on prescription drugs.
Speaking of Medicare, the monthly costs will also become more expensive.
Part B premiums cover outpatient and diagnostic services, and enrolled seniors pay a premium that changes each year.
The Congressional Research Service predicts Medicare Part B premiums will rise from $ 148.50 to $ 157.70 per month in 2022.
Meanwhile, Medicare Part A, which covers hospital care, is generally free for seniors who have paid Medicare taxes for a period of time while working.
We show you five ways to increase your Social Security checks at any age.
We also show you the impact of work on your Social Security payments.
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