The government has announced an increase of 5.9% in COLA. This increase will lead to a rise in benefits provided to the citizens of the U.S.; however, the help of the rise might not be applicable shortly. According to the Bureau of Labour Statistics report, consumer prices have witnessed a hike of 6.3%. The Social Security Administration announced the COLA increase in October this year. However, the increase will be applicable from January 2022.
The Increase In House And Healthcare Rates Have Nullified The COLA Benefits
The sources have informed that the citizens have had to face a steep rise in prices of daily products. The citizens are significantly affected by the sudden price rise, and they are destined to suffer a lot. The data derived from a recent survey shows that a considerable section of the population depended on food pantries for survival. Different sources suggest that there is an increase of 55% COLA benefits. The rise in house rates has increased by 118%, and it has overshadowed the benefits received by the citizens. In addition to the housing rates, the healthcare sector saw a rise of 145% in the cost of services and products. The citizens are found wanting due to the unexpected rise in costs.
According to an article on as.com, the retired workers received an average amount of $ 1562.66 during October 2021. After the increase rate is applied, the new sum will amount to $ 1,654.85 from January 2022. A total of twelve security checks are issued per year, with each per month. The benefits of the COLA are also applicable to individuals who receive Supplemental Security Income (SSI). The government had issued a sum of $ 587 for the recipients of SSI. If the rate remains unchanged, January 2022 will be $ 621, increasing $ 34.
Retired Workers And Their Family Are Among The Beneficiaries
According to the data released by the government, the retired worker makes 72.3% of the total beneficiaries while the others include their family members and children, and widows of deceased workers. The parents of the workers are also among the beneficiaries. The workers that are eligible for the COLA benefits receive a check from the government department.