5.9%
Due to inflation spiking in 2021, the cost of living went up. Everything from grocery items to gas is getting more expensive. That’s why starting with January 2022, more than 65 million Social Security beneficiaries began receiving large monthly payments. The increase reflected the 5,9% cost-of-living adjustment (COLA).
Given that inflation has been low in the U.S for decades before the COVID-19 pandemic, COLAs percentages were also low. For instance, in 2013 there was a 1,7% COLA increase, while in 2018 the Social Security recipients received a 2,0% COLA increase.
The 2022 increase in the cost-of-living adjustment is the highest in 40 years.
NJ should be on your list of “12” as Social Security is taxed federally.