Social Security Recipients to Receive 5.9% Increase Next Year

The Social Security Administration announced yesterday that recipients will receive an annual cost of living adjustment of 5.9% next year. The spike is expected to boost retiree’s monthly payments by $92 which is an estimated average of $1,657 for the year. The 70 million people who get social security receive a cost of living adjustment each year that’s based on a one-year increase in inflation and is designed to help beneficiaries cope with higher prices. This year the adjustment was 1.3% which is about $20 a month and over the past 12 years, the boost has averaged 1.4% according to the Senior Citizens League.

According to Social Security Medicare Policy analyst for the Senior Citizens League Mary Johnson, this would be the highest cost of living adjustment that most beneficiaries living today have ever seen. 40% of beneficiaries depend on the monthly checks for at least 90% of their income and two thirds of recipients depend on their payments for at least half of their income.