Social Security Is Being Raised in 2022- That Might Not Enough

Social Security is getting a boost in 2022. The SSA (Social Security Administration) announced that next year, Social Security recipients will receive a 5.9% increase in payments, amounting to an average of $92 extra a month (Fox Business). This high adjustment, the largest in 40 years, is due to the high inflation rate that the country has been experiencing the past 12 months. From September 2020 to September 2021, the country has seen an CPI increase of 5.4% (U.S. Bureau of Labor Statistics). Yes, it’s great that retirees are getting more money in their pockets next year to combat rising inflation, but the question still remains: will it be enough?

Everyone knows inflation is going up. And it hasn’t been slowing down. When the FED is acknowledging that the “transitory” period of inflation is lasting longer than they anticipated, you know it’s becoming a problem. Taking a deep dive into the recent CPI numbers, and we see a growing problem. That 6% increase in Social Security benefits? That might not be enough to help retirees.

Since September of last year, “Food at Home” has increased 4.5%. However, “Meats, poultry, fish and eggs” have increased an astounding 10.5%. Energy has increased in the same time period 24.8%, including “Gasoline” as high as 42% and “Natural gas” as high as 20%. Furthermore, “Physicians’ services” increased “3.8%” and “Transportation services” increased 4.4%. (U.S. Bureau of Labor Statistics). It’s great that Social Security retirees are going to be getting an extra $92 a month, but that might not coverage the increasing costs of food, energy and services that people across the nation are seeing.

To make matters worse, the AP is reporting that households could see a jump in their heating bill as high as 54% compared to last year, due to the huge increases in gas and natural gas prices. Americans could be dishing out an extra $746 this winter, and that number could be even higher for those in colder states.

So while it may seem like good news that Social Security payments will be increasing by 5.9%, it won’t be enough to combat the price increases in food, energy and service. Inflation is eating away people’s earnings and savings, and minimal increases in Social Security won’t be enough for retirees.