Millions eligible to get over $140 as social security benefits jump, here's what you need to know

Published on October 15, 2022 at 9:45 AM by Luan Trimi

The US Social Security Administration has announced a bump in social benefits upwards of 8.7% starting from next year.

Social security benefits jump, what does this mean?

Politicoreports the positive news for people who are eligible for social benefits in the US, who under a new adjustment in the rates are going to benefit from an increase in their allowance of up to 8.7% starting next year.

Discover our latest podcast

The spike in benefits starts next year

According to the announcement, the benefits will commence early next year in January, and millions of people are eligible.

Social security benefits jump, what does this mean?

The recent increase translates to an average addition of $140 to each eligible beneficiary, Politico reports.

According to Kilolo Kijakazi, the Social Security Administration’s Acting Commissioner, the medicare premiums are also expected to go down in 2023, so with the increase in social benefits, both news are going to provide additional 'peace of mind' for beneficiaries, Axiosreports.

The biggest jump in benefits in 40 years

The increase in social benefits marks a historic rise and will be welcomed by American retirees and others who are eligible. However, it also comes at a time of peak inflationary period that has made everyday living much more difficult.

thumbnail — Social security benefits jump, what does this mean? Portland Press Herald / Contributeur

Using a formula to calculate the consumer price index vis-a-vis the annual cost-of-living the Social Security Administration ensures that monthly social benefits are not consumed by inflation.

Compared to other countries, globally the US has fared best under the current inflationary period. Yet, the cost of living is rising and people are facing increasingly shorter pockets.

In September the cost of living in the US rose twice as much as economists expected.