Social Security COLA largest in decades as inflation jumps

Millions of retirees on Social Security will get a 5.9% boost in benefits for 2022

Social Security Cost of Living (Copyright 2021 The Associated Press. All rights reserved.)

Millions of retirees on Social Security will get a 5.9% boost in benefits for 2022. The biggest cost-of-living adjustment in 39 years follows a burst in inflation as the economy struggles to shake off the drag of the coronavirus pandemic.

The COLA, as it's commonly known, amounts to $92 a month for the average retired worker, according to estimates released Wednesday by the Social Security Administration. That marks an abrupt break from a long lull in inflation that saw cost-of-living adjustments averaging just 1.65% a year over the last 10 years.

With the increase the estimated average Social Security payment for a retired worker will be $1,657 a month next year. A typical couple’s benefits would rise $154 to $2,753 per month.

The increase affects household budgets for about 1 in 5 Americans nearly 70 million people, including Social Security recipients, disabled veterans and federal retirees.