- 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.