Social Security recipients will see boost in payments next year
MEMPHIS, Tenn. (WMC) - An increase in assistance nationwide, not seen in decades, is now on the calendar.
A local economist say don’t expect the same thing to happen the next year.
For the first time since 1982, Social Security recipients will receive a nearly 6% increase in benefits next year.
“In 2022 in January, we’ll see people get a 5.9% increase in Social Security, but it’s because of the inflation that took place in 21′. So, it’s after the fact you’ve already spent the money. Now they’re going to give you some money to help offset it,” President of 901 economics Dr. John Gnuschke said.
Dr. Gnuskhe says the reasons for inflation are supply chain issues, worker shortages and other economic disruptions from the COVID-19 pandemic.
The roughly 70-million people who get Social Security, including retirees, Americans with disabilities and others, receive a cost of living adjustment each year.
It’s based on a one-year increase in inflation and is designed to help beneficiaries cope when prices rise.
“2022 will be an entirely different year. And so if inflation rates fall like they’re expected to happen here. Okay. Then in the spring of, or in January of 2023, we’ll see a much smaller increase in our social security,” Dr. Gnuschke said.
Gunishke says there are many economic issues in Memphis and around the country.
He’s happy to see Social Security recipients get help.
“The economy drives Memphis. It drives us forward. We’ve got to solve some of the problems with the economy in order to solve our social problems. So they’re all interrelated and we’re grateful to see that, that the social security recipients at least will be helped,” Dr. Gnuschke said.
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