Citizens of the United States will soon see a boost in their pay. Supplemental Security Income and other Social Security payments for disadvantaged Americans are growing because to a cost of living adjustment (also known as a COLA).
COLA Stands for Cost Of Living Adjustment
With a 5.9% cost-of-living increase, benefits for more than 64 million Social Security claimants will begin in January 2022. Approximately 8 million SSI participants will begin receiving increased payments on December 30, 2021. According to the SSA, the amount of income subject to the Social Security tax (taxable maximum) will increase to $147,000.
Cost-of-living adjustments are increases in benefits or pay to compensate for inflation. The Consumer Price Index for Urban Wage Earners and Clerical Workers, which is updated yearly, is used to calculate inflation for the Social Security COLA. Living prices can also vary greatly by city and state, according to Investopedia, with major urban regions often costing more to reside.
Recipients of Social Security Benefits
It’s the largest rise for Social Security beneficiaries in over 40 years. It also makes a subtle but crucial reference to the present inflationary scenario in the United States. The Social Security Administration mailed notices of the payment increases to Social Security recipients last month.
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The following criteria are required for SSI eligibility: age 65 or older, inability to sight, or disability. Individuals who do not have a lot of money or are limited in their resources, and who are either U.S. citizens or nationals, or who are classed as aliens in one of a few categories.