Eight Million Recipients to Receive Social Security Increase in the Next Six Weeks

Sharee B.

Those receiving social security benefits are about to receive a bonus in their paycheck starting at the beginning of the year.

According to the Social Security Administration, current recipients have been granted a COLA or cost of living adjustment increase. The move marks the second increase in just over twelve months after the previous adjustment which saw retirees gain an additional 1.3% in their monthly installments.

Currently, the typical social security benefit averages at around $18,000 per year when factoring that it comprises the recommended 40% of retirement income.

The latest raise adds an extra 5.9% to the average budget every month as many are struggling with rising prices due to inflation. More than 8 million retirees will see a minimum of $1011 in additional benefits next year, as one of the largest COLA in almost four decades.

Several other key changes are also set to take place as the new year rolls around.

  • Earning allowance raised to $19,650 for those under full retirement age
  • SSDI benefits increased to more than $2300 monthly for a disabled couple with a child
  • Wage limits capped at $51,960 for fully aged retirees starting next year
  • Total earnings subject to social security tax capped at $142,800

A new benefits schedule has also been instituted to accommodate the rate increase, which allows increased payments to commence based on the recipient's date of birth.

The bonus payments will be staggered as follows:

  • Birthdays occurring between the 1st and 10th of the month- money received on 2nd Wednesdays
  • Birthdays occurring between the 11th and 20th of the month- money received on 3rd Wednesdays
  • Birthdays occurring between the 21st and 30th of the month- money received on 4th Wednesdays

Letters advising current recipients will begin to be sent out as of the last week of 2021.

Comments / 186

Published by

I'm a personal finance writer and CFEI with a mission to provide advice, tips, and news regarding personal finance topics. I'll be providing articles related to credit, savings ,budgets, retirement, passive income and anything else that relates to attaining financial independence. Feel free to drop me a line anytime.

Texas State

More from Sharee B.

Comments / 0