The cost-of-living adjustment is seeing the biggest jump since 1982.
If you receive Social Security benefits, you’ll get a significant raise in 2022 — and high earners will owe more in payroll taxes.
Social Security beneficiaries will receive a 5.9% cost-of-living adjustment in their Social Security benefits in 2022, the biggest jump since 1982, when benefits rose 7.4%.
In 2021, the COLA was just 1.3%. The average monthly benefit will rise from $1,565 to $1,657 in 2022, or $92 a month. The average monthly payment for a married couple who are both receiving benefits will increase to $2,753, from $2,599.
But given price hikes for everything from gas to restaurant meals, some seniors may discover that the pay raise will fall short of increases in their cost of living — particularly when health care costs are taken into account.
Medicare Part B premiums, which cover doctor visits and outpatient services, are rising to $170.10 per month in 2022, up from $148.50 the year before, according to the Centers for Medicare & Medicaid Services.
High earners who are subject to the Medicare Part B surcharge will pay $238.10 to $578.30 per month in 2022, up from 207.90 to $504.90 in 2021.
The average premium for Medicare Part D, which covers prescription drugs, will be $33 per month in 2022, compared with $31.47 in 2021.