Brett Arends’s ROI: Here’s how much your Social Security check is likely to go up next year

by | Jun 30, 2022 | Stock Market

Good news — sort of. If you’re retired or just about to retire, next year’s Social Security checks are likely to see one of the biggest bumps on record as a result of surging consumer prices. The average beneficiary may be in line to get as much as $180 more a month starting next January, based on recent inflation. And they are almost certainly can expect at least an extra $120.

These are the numbers based on the Social Security Administration’s own figures. The numbers were run by the Center for a Responsible Federal Budget, a well-known Washington, D.C. think-tank. The higher payments will be welcome news for retirees, who have seen their household finances squeezed badly so far this year as a result of rocketing inflation and turmoil in the financial markets. The consumer-price index rose by 8.6% in the year through May, way ahead of the 5.9% annual inflation adjustment handed out to Social Security beneficiaries in January. Meanwhile, retirees with savings in stocks and bonds have seen their portfolios slump with the financial markets. Read: Here’s how much the average working boomer has saved for retirement And anyone living on a fixed income, for example as a result of a lifetime annuity, is being hit especially hard by inflation. Very few annuities adjust payouts to account for inflation, so the checks have simply lost 9% of their purchasing power in a year. Even those annuit …

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