But 4 in 10 older Americans rely on the monthly benefit as their sole source of retirement income, according to a 2020 study from the National Institute on Retirement Security. LaVigne noted that Social Security was designed to be a supplement to retirement income, and it currently replaces about 40% of the average American's income in retirement. "If they want to buy meat, or if they are buying gas or have home heating fuel, that increase is going to get crushed by those expenses that have gone up," noted Kelly LaVigne, vice president of consumer insights at Allianz Life. A recent survey by Gallup found that almost half of respondents said that inflation is causing financial hardship. Meat, poultry and other proteins rose almost 13%. However, the standard cost for Medicare's Part B is jumping 14.5% to $170.10 per month starting in 2022, an increase of $21.60, according to the Centers for Medicare & Medicaid Services.Īnd daily costs are also on the rise: gasoline shot up almost 60% in November compared with the prior year, while food prices have increased about 6%, the government said earlier this month. Disabled workers will get a $75 increase on average, from $1,283 a month to $1,358, according to the agency. The spouse of a retired worker will see a roughly $47 bump, lifting average monthly benefits from $794 to $841 including the 5.9% COLA adjustment. The average beneficiary will receive an extra $93 a month, the Social Security Administration said, meaning the typical monthly check will rise to $1,658 in January from $1,565 previously. It's easy to see how the benefit increase may evaporate. But once they go through their household budget, they will realize it still won't pay for all the increasing bills." Average benefit increase: $93 a month She added, "So, retirees, anybody living on a fixed income, need to be aware that the 5.9% may look like a bigger increase than we've ever gotten. "Even with that 5.9% COLA, inflation through November was up 6.8% for the past 12 months, and it looks like economists are forecasting that may continue." "We are still going to see this tremendous problem with prices increasing faster than the COLA," said Mary Johnson, Social Security and Medicare policy analyst at the Senior Citizens League, an advocacy group. The Social Security Administration said it mailed notices to all recipients in December to alert them to their COLA increase, but the information can also be found online in the message center in recipients' my Social Security account.
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