A fourth coronavirus stimulus check may not come, but the increased SSA benefits due to the cost-of-living adjustment (COLA) could provide some relief to people. These increased social security benefits, or we could say SSA coronavirus stimulus checks, would benefit about 70 million Americans.
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Every year, the SSA (Social Security Administration) adjusts payments to reflect inflation, and this adjustment is referred to as the cost-of-living adjustment (COLA). This COLA adjustment considers the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August, and September.
In November, the Social Security Administration said that social security benefit recipients can expect a significant increase in their payments. For the year 2022, the COLA hike is 5.9%, which is the biggest in almost 40 years. The recipients witnessed a 7.4% increase in monthly entitlement in 1982.
Such a significant increase in benefits next year is because of the record high inflation in the U.S. in recent months. Massive stimulus programs to address the impact of the COVID-19 pandemic, as well as supply chain disruptions, are the primary contributors to inflation.
Though about 70 million people will directly benefit from the increased payment, not all will realize the benefit at the same time. This is because the SSA manages several social benefits programs, with each catering to a different set of people. Also, the schedule of payment for each program is different.
So, the first recipients of the increased social security benefits will be SSI (Supplemental Security Income) recipients. The SSI payments are scheduled to go out from December 30, 2021 to about eight million beneficiaries. These SSI payments would usually hit the bank accounts of eligible recipients on the first of the month.
COLA Benefits To Recipients Of SSA's Retirement Benefits Program
The next beneficiaries of the increased COLA benefits will be recipients of SSA’s retirement benefits program. This program benefits about 61 million people across the country. Owing to the massive number of beneficiaries, the payments under the retirement benefits program go out in three batches depending upon the recipient’s birth date.
For instance, those born on the 1st through the 10th of the month will get the payment on the second Wednesday of the month. This means they will be getting the payment on January 12 next month.
Similarly, those with a birth date on the 11th through to the 20th of the month will get the payment on the third Wednesday of the month. So, next month, they will be getting the payment on January 19.
Finally, those with a birth date on the 21st of the month or later will get the payment on the fourth Wednesday of the month. Their payment will arrive on January 26 next month.
The SSA will also be sending out letters to beneficiaries this month detailing how much their benefits will increase.
