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Susan Tompor: Social Security retirement benefits could see big hike in 2022: What to know

Susan Tompor, Detroit Free Press on

Published in Home and Consumer News

Predictions that Social Security retirement benefits could be heading for a 6.2% hike in 2022, thanks to a bump in inflation, could lead some baby boomers to figure they've got one less reason to wait to claim benefits.

After all, those claiming retirement benefits are going to get more money next year. Why not rush to claim at age 62 or 63 now if you're going to get extra dough? Well, experts warn that you might want to rethink that one.

Social Security retirement benefits are turning into one hot topic as we're hearing more buzz about a future hefty cost of living adjustment next year.

The cost of living adjustment, known as COLA, was a mere 1.3% in 2021 — raising the average benefit by about $21 for monthly payments and making it one of the lowest increases on record since 1975 when Social Security started automatic annual cost-of-living allowances.

What's ahead in 2022?

Next year, we're talking real money.

 

Some retirees could be looking at an extra $100 a month, based on an average Social Security retirement monthly payment of $1,655.71 in July.

We won't know the official cost of living adjustment for 2022 until the Social Security Administration makes that announcement in October. The percentage is determined after the U.S. Bureau of Labor Statistics releases the September Consumer Price Index.

Any increase due to COLA will show up in checks and direct deposit benefits paid in January.

Right now, it looks like the cost-of-living adjustment is going to be around 6.2%, according to the Senior Citizens League, a nonpartisan group dedicated to protecting and strengthening Social Security benefits.

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