According to Yahoo! Finance, Social Security and Supplemental Social Security payments will increase by nearly 6% next year. This is the largest increase in social security payments since 1982 to account for the cost of living adjustment. For the average retiree, monthly benefits will rise by $92 to $1,657. For couples, FOX Business reports that benefits will rise by $154 to $2,754. In comparison, cost of living adjustment increases have averaged just 1.6% over the last five years.
Unfortunately, many social security recipients feel that the increase won't be enough to account for inflation and the increased cost of living.
“COLAs are intended to protect the buying power of Social Security benefits but, according to consumer price data through July of 2021, Social Security benefits have lost nearly one-third of their buying power, 32 percent, since 2000, about the length of a typical retirement,” Mary Johnson of The Senior Citizens League told Yahoo! Finance.
“Even worse, it appears that inflation is not done with us yet, and the buying power of Social Security benefits may continue to erode into 2022.”
Everyday expenses such as food, housing and drug prices are expected to rise. The Senior Citizens League expects food costs to rise anywhere from 1.5-4% and rental housing to jump up by 7%. Adding on, home heating costs are expected to rise between 21-25% and drug premiums are expected to rise by 5%. To help out with these costs, The Senior Citizens League is advocating for a $1,400 stimulus check for those receiving Social Security payments.