Social Security Increase by 5.9%: What Does This Mean?

Social Security Increase by 5.9%

Fragile Rock is alive and well, Michael Jackson’s Thriller album goes to #1 and stays long enough to set a new world record. And Return of the Jedi premieres in theaters, quickly rising to the highest-grossing film of 1983.

This was also one of the last times our Nation saw an increase this significant in Social Security benefits. Recently the government announced a 5.9% cost-of-living adjustment, or COLA, will begin at the beginning of 2022 for more than 64 million beneficiaries in the program.

The recent increase of 5.9% which is the largest in almost 39 years, puts an extra $92 a month for the average beneficiary. 

Related Post: Can I Have Both Employer Insurance and Medicare? 

What Does Social Security Do?

Social Security is a federal program that ensures income stability for millions of households in the United States. It does so by providing a reliable source of income to replace wages lost due to retirement, disability, or death.

Many Americans don’t realize the impact the Social Security program has on our economy as well as those of us not receiving benefits. According to a study conducted at the University of Mississippi, every dollar of Social Security benefits generates about $2 of economic output.

Consider this example. Social Security benefits in 2012 facilitated the following:

  • About $1.4 trillion in economic output (goods and services)
  • Just over 9.2 million jobs
  • About $774 billion in value added (gross domestic product)
  • More than $370 billion in salaries, wages, and other compensation

Although the Social Security program in the United States greatly affects our economy, economists don’t predict a huge change with this recent increase. 

Related Post: Can I Get Medicare While Still Working?

For more information on Medicare and Social Security benefits, please continue browsing our website.