SOCIAL SECURITY
COLA 2022: What will be the monthly amount for Social Security disability?
The Social Security Administration announced COLA will a record 5.9% in 2022, letting many Americans learn their potential income as of January.
Following all the damage that the pandemic has done to the US economy, the Social Security Administration (SSA) have officially confirmed that there is going to be a record-breaking Cost-Of-Living Adjustment (COLA) coming into effect next year as of January 2022.
Therefore, it is estimated that around 70 million people, who will receive benefits in 2022, will see their monthly aid increased by a 5.9 percent boost. This increase is the biggest year-on-year COLA since 1982, only coming close in 2009 with an adjustment of 5.8.
The reason behind the vast adjustment needed is simple: the pandemic has caused consumer prices to spike, with energy prices rising, as well as water, food, housing and healthcare also going up. The higher the consuming cost, the higher the money needed to cover the expenses.
Why is COLA important?
According to the SSA, COLA was first employed to ensure that the "purchasing power of Social Security and Supplemental Security Income (SSI) benefits is not eroded by inflation", which means that the purpose of COLA is to do any adjusments necesary to ensure the benefits claimants receive go hand-in-hand with the ups and downs of the economy. In this way inflation doesn't devalue the aid, but the COLA is never negative.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) is checked from the third quarter ( July to September) from the last year to the third quarter of the current year. In this time period economic fluctuations happen, consumer prices can go up, in which case the COLA will also rise, it can go down or it could stay the same, and no COLA is needed. Meaning the actual Social Security benefits go accordingly with the economy, but recipients won't lose their purchasing power nor see their benefits cut.
8 million disabled will see their SSI increased
As well as the main group of beneficiaries, retired workers, another large group will be benefiting from the 5.9 percent increase, disabled people. The SSA estimates that about 8 million people claim disability benefits and will therefore see their aid increase as of January 2022.
General dissability claimants are set to receive an extra 76 dollars every month, going from $1,282 dollars a month to $1,358. Furthermore, disabled workers which are married and have one or more children will see their income increased by 133 dollars each month, shifting from $2,250 to $2,383. Note that the extra amount each group receives varies according to the 5.9 percent of the initial eligible amount.
SS Dissability benefits
| Group | Benefits in 2021 | Benefits in 2022 |
| Disabled worker, spouse and one or more children | $2,250.00 | $2,383.00 |
| All disabled workers | $1,282.00 | $1,358.00 |