Social Security (Photo by Win McNamee/Getty Images)
#Roommates, the Social Security Administration surprised many with the recent announcement that major updates have been made to social security payments. Millions of retirees are set to receive the largest increase in social security payments in almost 40 years—and the payouts are set to begin next year.
@APNews reports, to keep up with the continuously rising cost of living, the Social Security Administration has confirmed that retirees who receive payments will get a 5.9% boost in their benefits beginning in 2022. This increase is reportedly the largest in 39 years and is a direct response to the massive inflation costs that was worsened by the COVID-19 pandemic.
Retirees will now receive an additional $92 a month based on early estimates, totaling $1,657 in monthly benefits. Meanwhile, a couple’s benefits would rise by $154 or $2,753 a month. However, the increase approval is an effort to make up for what many recipients are spending on food, gas, rent/mortgage and other essentials.
In case you need a refresher, social security is made possible by payroll taxes collected from workers and their employers. Both workers and employers pay 6.2% on wages, which is adjusted annually for inflation. In 2022, the maximum amount of earnings subject to social security payroll taxes will increase to $147,000.
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