Wednesday, July 6, 2022

Social Security may increase by 8.6% next year, maximum average increase of 142 yuan in 42 years

Social Security checks are expected to grow 8.6% next year, the biggest increase since 1981, with an average increase of $142 for recipients. (The Associated Press)

Labor Department announces consumer prices for Aprilindex(CPI) On the same day, the non-profit organization “Senior Citizens League” predicted that,social SecurityThe cost of living is expected to rise 8.6% next year, the biggest increase since 1981.

CBS News, citing seniors union figures, reported that Social SecuritycheckTypically around 1,658 yuan per month, based on an estimated increase of 8.6%, this will increase to 142.6 yuan per month at the beginning of 2023, and the total amount of checks will be 1,800 yuan.

Social Security and Medicare policy analyst for Seniors Alliance, Mary. Jonathan (Mary Johnson) said the forecast is based on the latest inflation data, including the government’s April consumer price index for goods and services, released on the 11th; April CPI rose 8.3% compared to a year ago, slightly lower than March’s 8.5% annual growth rate.

The cost-of-living adjustment (COLA) is based on the Consumer Price Index for Urban Salaried and Clerical Workers (CPI-W); The April CPI-W rose 8.9% compared to a year ago, a slightly faster annual increase than the year-ago increase. Comprehensive price index.

A total of 69 million people in the United States receive Social Security benefits. In January, the cost of living increased by 5.9%, the biggest increase since 1982. However, this year inflation is much higher than the increase in cost of living, resulting in insufficient real purchasing power.

“5.9 percent is not enough to keep up with inflation, regular salaries are becoming increasingly difficult, and we are in some extreme cases,” Jonathan said.

The Social Security Administration (SSA) will determine the 2023 COLA in October this year based on inflation data from July to September, and the announced rate adjustments may differ from Seniors Alliance’s current assessment; Jonathan predicted a 6.1% increase last year, the actual adjustment in 2022 is 5.9%.

In 1980 and 1981, COLA increased by 14.3 percent and 11.2 percent, respectively, the two biggest increases since 1975, according to Social Security Administration data; Earlier, instead of taking inflation into account, growth was legislated.

Jonathan said Social Security’s real purchasing power has declined 40% since 2000, partly due to the fact that the cost of living doesn’t keep pace with inflation; The Index for the Elderly, which places a greater emphasis on costs such as health care, is used as the basis for calculating the annual increase in COLA.

As real purchasing power declines, more seniors are relying on food banks and food stamps The Seniors Alliance survey found that 45% of respondents relied on these sources for food in January, doubling the number in October last year. Was.

“It’s so sad, it makes me want to cry,” Jonathan said.

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