The Social Security Administration Announces 2022 Cost-of-Living Adjustment

On October 13, 2021, the Social Security Administration (SSA) officially announced that Social Security recipients will receive a 5.9 percent cost-of-living adjustment (COLA) for 2022, the largest increase in four decades. This adjustment will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Additionally, increased payments to more than 8 million Supplemental Security Income (SSI) beneficiaries will begin on December 31, 2021.¹

Biggest COLA Increase in Decades?

While many predicted a bump of as much as 6.1% given recent movement in the Consumer Price Index (CPI), the announced 5.9% increase is still substantial. Some fear that rising consumer prices may dilute the impact of the increase with inflation currently running at more than 5 percent. While this remains to be seen, Social Security beneficiaries will no doubt welcome the largest adjustment in many years.¹

How You Will Be Notified

According to the Social Security Administration, Social Security and SSI beneficiaries are usually notified about their new benefit amount by mail starting in early December. However, if you’ve set up your SSA online account, you will also be able to view your COLA notice online through your “My Social Security” account.¹

Next Steps?

This increase is good news for many of you and can impact your financial plan and goal setting positively for the upcoming year. At a minimum, we want to meet annually with our clients and encourage you to schedule planning meetings to implement these new changes in income to your individual plans.

We’re always here to support and meet with our clients and look forward to discussing your individual needs and goals for the coming year.

1. https://www.ssa.gov/news/press/releases/2021/#10-2021-2

 

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WE’RE HERE TO HELP

If you have any questions about the cost-of-living adjustment, please call or email us at (410) 823-5442 or invest@peakeadvisors.com.

Chesapeake Financial Advisors is a fee-only financial planning, investment advisory and tax planning firm with offices in Towson, Columbia, and Frederick, Maryland.

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