The 5.9% cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Increased payments to approximately 8 million SSI beneficiaries will begin on Dec. 30, 2021.

The Social Security Act ties the annual COLA to the increase in the consumer price index as determined by the Department of Labor’s Bureau of Labor Statistics.

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $147,000 from $142,800.

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount.

Most people who receive Social Security payments will be able to view their COLA notice online through their personal My Social Security account. People may create or access their My Social Security account online at socialsecurity.gov/myaccount.   

The Social Security Act provides for how the COLA is calculated. To read more, visit socialsecurity.gov/cola.