Social Security benefits to get monthly boost

A current inflation spike will provide a 5.9 percent increase in Social Security payments for retirees in 2022. The cost of living adjustment will increase the typical monthly payments by $92 for roughly $1,657 each month. The change will affect about 70 million recipients, including retirees, disabled veterans, and federal workers.

How will the adjustment help? Nearly half of U.S. senior citizens live in households that depend on monthly Social Security benefits for 50 percent of their income. Many retirees have struggled to pay for rising consumer prices. The Federal Reserve insists that inflation will be temporary while the economy recovers from pandemic shutdowns. Social Security stands to run out of money to fund full benefits within the next 15 years. Rep. John Larson, D-Conn., introduced a bill to increase payroll taxes to fund the program and change the cost of living adjustment formula to address medical expenses.

Dig deeper: Listen to Paul Butler discuss the founding of the Social Security Administration.