How Social Security, Wage Increases and SNAP Will Ease Inflation in 2022
Expected inflation keep rising in the new yearAmericans can use all the financial aid they can get in 2022. Fortunately, some will receive an income boost to help them cope with higher prices on everything from gas and food to energy, household goods and healthcare.
Here’s a look at three different ways you could do that get more money in 2022:
While the federal minimum wage has been locked in at $7.25 an hour for more than a decade, certain cities, states and counties have made their own raises. A total of 74 states, cities and counties have raised their minimum wages this year, the New Hamphire WMUR reported, citing data from the National Employment Law Project. The project still lists the number for 2022, but expects it to be roughly the same.
For example, the minimum wage in Arizona will rise to $12.80 an hour in 2022 from $12.15 this year, while the Colorado minimum wage will increase to $12.56 an hour in 2022 from $12.32 this year.
also the minimum wage for federal contractors rises to $15 per hour in 2022 following an executive order signed by President Joe Biden. The higher wages come into effect when new contracts are signed or when certain actions are taken, such as extensions or renewals.
Meanwhile, a number of large employers have raised or are going to raise the minimum wage for their own employees, GOBankingRates previously reported. In some cases, the increases have doubled workers’ wages. The list of high-profile companies that have already raised their minimum wages includes Aetna, Amazon, Bank of America, Ben & Jerry’s, Best Buy, Cigna, Costco, Facebook, Fifth Third Bancorp, Google, JPMorgan Chase, Target and Wells Fargo.
Social Security recipients get their highest cost of living (COLA) adjustment in decades next year, when monthly payments will rise 5.9% to account for inflation. As GOBankingRates recently reported, the average monthly Social Security benefit will increase from $1,565 to $1,657 for 2022. For couples, the average will be about $3,000 per month.
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The COLA for 2021 was just 1.3%, WMUR noted, translating to about an additional $20 per month for recipients.
Americans eligible for food stamps received a raise in October as the federal government’s new fiscal year began. The median monthly benefit for fiscal year 2022 rose to $251 per person, from $240 per person. The increase is the result of an ongoing update to the Department of Agriculture’s Thrifty Food Plan, which determines the Supplemental Nutrition Assistance Program (SNAP) benefit amount.
SNAP recipients also received a cost of living adjustment that works out to $3 per month for the current fiscal year.
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This article originally appeared on GOBankingRates.com: How Social Security, Wage Increases and SNAP Will Ease Inflation in 2022