The Cost-of-Living Adjustment (COLA) was recently announced, and recipients for Social Security Benefits will expect to receive a 5.9% increase in 2022. This increase includes those who receive disability and retirement benefits from the SSA.
As the highest COLA increase since 1982, this is a historical increase. The average COLA increase percentage over the past 12 years has been 1.65% – about a third of what it is expected to be this coming year. However, it is important to note that the substantial increase from previous years is directly correlated to significant inflation brought on by the COVID-19 pandemic and the SSA’s ongoing effort to meet the ever-growing consumer price index for its beneficiaries’ needs.
With all of this all-encompassing change considered, could this finally be enough for beneficiaries with a fixed income to make ends meet?
What Does the COLA Mean for Those Who Receive Disability Benefits?
As the prices of everyday goods and services continue to rise, those collecting disability benefits should expect to see an increase of about $76 a month in benefits. The average monthly SSD benefit will increase from 1,282 in 2021 to $1,358 in 2022.
Although it seems like a generous payment and sizable increase percentage, the COLA can fall short for those who depend on it. The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. However, some argue that this is not the best method, as it does not account for households who are no longer in the workforce, a majority of which are the retirees and those who are receiving disability benefits.
Contact Our Team of Skilled Michigan SSD Lawyers Today
At the Disability Attorneys of Michigan, our calling is to serve the disabled community statewide. That’s why it is our only area of practice and where we get our name. Have you been denied rightful SSD benefits, or are you looking to collect? We can help. Submit a web inquiry form on our website or call our office toll-free at 800-949-2900 today for a free legal consultation. We will help you win the benefits not only that you need but deserve.