The retired workers in America are set for a bonanza from January next year. According to reports, the Social Security checks will increase to around $1,600 per month.
The increase in amount is calculated on the basis of the new cost-of-living adjustment (COLA).
The decision will increase the paycheck of more than 64 million Americans.
Checks in 2022 will see a 5.9% rise. It is the highest increase since 1982, reports said. However, the Bureau of Labor Statistics data showed that prices have surged by 6.3% over the last year.
Retired workers on average received around $1,562.66 in October. They are likely to receive an average payment of $1,654.65 from January.
Americans that claim Social Security benefits get 12 checks annually.
Though 70% of Social Security recipients are retired Americans, the spouses and kids can also claim the cash.
Those who get Supplemental Security Income (SSI) can expect a 5.9% increase in their monthly checks.
According to the Senior Citizens League, one in five older seniors visited food pantries or applied for food stamps.
Healthcare costs have increased significantly over a period.
Meanwhile, many people started a campaign on social media, urging the Biden administration to offer elderly additional stimulus checks, considering the arrival of Thanksgiving and Christmas.
As per the plan now, the families are likely to cash before Christmas.
Millions of homes will receive the final child tax credit payment on December 15.
A majority of families have been receiving up to $300 per child since July.
Considering the struggles being faced by a lot of Americans due to the adverse effects of Covid-19 and the associated economic impact, the measures of the administration in providing stimulus checks have acted as a step offering great help, observers pointed out. The increase in checks slated for the new year could give solace to many Americans.