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You’ll get more money from Social Security benefits next year

Social Security benefits will see one of the highest jumps in about 40 years

Photo of a Social Security card.
A Social Security card in Tigard, Ore. Millions of retirees on Social Security will get a 5.9% boost in benefits for 2022.
Associated Press

Social Security benefits will see their biggest one-year increase in about 40 years, as gains are expected to jump by 5.9%, according to the Social Security Administration.

  • The increase will benefit senior citizens and other Americans who receive Social Security, which is about 65 million people.
  • There are an additional 8 million people who receive Supplemental Security Income, who will also see the increase.

The jump is a sign of surging inflation during the coronavirus pandemic, according to The Wall Street Journal.

  • In fact, the Bureau of Labor Statistics said Wednesday that prices rose 0.4% from September to August. That said, prices jumped 5.4% overall in the last year.

Per The Washington Post, Social Security benefits have climbed about 1.7% per year over the last 10 years. This makes the recent jump the biggest climb since 1982.

  • “This is welcome but inadequate — health care and prescription drug costs have been going up way faster than seniors’ cost of living. People’s Social Security benefits have been eroding,” Nancy Altman, co-director of Social Security Works, a nonprofit group, told The Washington Post.

This isn’t a big surprise for some. Per USA Today, the Senior Citizen League, a nonpartisan seniors group, suggested that people would see close to a 6% increase in benefits based on rising inflation.

  • The average retiree gets a monthly check of about $1,559 per month. A 6% rise would give them a check closer to $1,652.54, in 2022, per USA Today.

That said, experts said senior citizens will see less than a 6% bump “because Medicare Part B premiums are deducted from Social Security beneficiaries’ checks and are tied to seniors’ income,” according to The Washington Post.