What Percentage Raise Will The COLA Be For 2022?
The cost of living adjustment (COLA) is 5.9% for 2022 — the highest percentage increase in nearly 40 years. For many people collecting Social Security Disability Insurance (SSDI), this is the highest monthly payment increase they’ve seen yet. This is due to the significant inflation brought on by the economic strain of the COVID-19 pandemic, coupled with the Social Security Administration’s (SSA) ongoing effort to meet the consumer price index for its beneficiaries’ needs.
Since 1975, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) has aimed for the cost-of-living adjustment to line up the SSA’s federal benefits with the general cost of living. Factored in are everyday consumer goods like groceries and services such as transportation. However, even with this steep increase in benefits, it is still unlikely that this rise will be sufficient to meet the general cost of living needs. Let’s take a closer look at the impact of COLA on those collecting SSDI benefits.
How Much More Will Be Added To Monthly SSDI Payments?
As the prices of everyday goods and services continue to rise, people collecting SSDI benefits should expect to see about a $76 increase in disability benefits per month. On paper, this might seem substantial to some. Still, it is unfortunately not enough for those collecting to pay bills.
Since 2000, Social Security recipients’ buying power has dwindled as COLAS only grew by about half as much as the cost of goods and services typically purchased by recipients. The COLA often neglects living and medical expenses and other necessities like energy costs. Unfortunately, the federal government will not take this into account until absolutely necessary.
“We’re at a point in time where people don’t react to policy needs until there is a sense of desperation, and both Social Security and Medicare are programs that benefit from long-range planning rather than short-range machinations,” says Marilyn Moon, an economist. She has served as a public trustee for Social Security, as well as Medicare.
Protecting The Good People In The Carolinas
Everyone deserves their best chance at stability and success in their lifetime — especially our most vulnerable. This is why we serve to protect and advocate for the injured and disabled people across North and South Carolina. Whether you are applying for SSDI benefits or have been wrongfully denied, it is always in your best interest to consult with a Social Security Disability attorney to address any questions you may have. Contact the attorneys at Grimes Teich Anderson by submitting an inquiry form online or calling our office toll-free at 800-533-6845 today for a free legal consultation.