Social Security can change from one year to the next which is why you will always find the most updated
information on Social Security right here in this blog. Changes can easily be missed since Social Security
changes won’t always make the front page of the paper or popular news sites. Missing these changes
and not planning accordingly to them can have dire consequences for certain individuals who are not
prepared. Staying on top of how Social Security changes year to year is crucial for those preparing to
collect Social Security in the next few years as big changes are sure to arise with new COVID strains
running parallel to fiscal policy.
But if you make an effort to stay apprised of those changes, you’ll put yourself in a better position to
manage your income and make the most of your benefits once it’s time to collect them.
1. The average monthly benefit is increasing
For years, seniors on Social Security have endured stingy cost-of-living adjustments, or COLAs, leaving
them with very little in the way of boosted income from one year to the next. But next year, the average
monthly benefit is rising substantially from $1,565 to $1,657.
The reason? Inflation has been rampant in recent months, and during the year’s third quarter, the
Consumer Price Index rose substantially. That data is used to calculate Social Security COLAs, and for
2022, that boost will amount to 5.9%.
But while the average monthly benefit may be rising in 2022, so too have living costs. And so all told,
seniors on Social Security may not actually end up gaining much buying power, especially since
Medicare Part B premiums are also climbing.