Social Security recipients are looking forward to the largest cost of living adjustment in four decades in January.

The Social Security Administration announced that the Cost of Living Adjustment in 2022 will be 5.9 percent, compared to an average of 1.4 percent over the past 12 years. The Cost of Living Adjustment in 2021 was 1.3 percent and raised monthly benefits by about $20. The 2022 increase will change an average monthly retirement benefit of $1,565 to roughly $1,657, an increase of $92.

Inflation concerns may have an impact of a large Cost of Living Adjustment. Prescription medications continue to be one of the biggest spending challenges for older households in 2022. The Centers for Medicare & Medicaid Services estimates that prescription drug plan premiums will increase almost 5 percent and the Medicare Part D out-of-pocket threshold before reaching the catastrophic phase of coverage is growing by 7.6 percent.

The annual open enrollment period to evaluate Medicare Part D prescription plans for 2022 is open from October 15th through December 7th. Changes made during this period will be effective January 1, 2022. To determine the program available visit www.medicare.gov or contact Gregg Mann gmann@corbenconsultants.com.