As most of us already know, the Social Security Administration announced a 5.9% increase for beneficiaries in 2022. It is the biggest increase in about 40 years.
The Cost of Living Adjustment, or COLA means people will see a larger dollar amount on checks. This increase has been implemented to help cover increasing costs - like housing, food, and utilities.
People who receive benefits will see an automatic raise on their checks near the end of December and into January.
Before that happens, it's a good time to review how this benefit increase will affect job seekers with disabilities. Financial planners advise beneficiaries to consider whether the increase can be used to lower debt or even start an emergency savings fund.
For people who are on Medicare or Medicaid, the increase may not seem as large because some of the money could go to help pay increased insurance premiums. In addition, taxes may change for some beneficiaries.
People are encouraged to create or access their online "my Social Security" account to watch for changes. Information about shifts in Medicare can be found at www.medicare.gov.