Inflation could prompt largest Social Security cost-of-living adjustment in decades. Why there's a push to change the way it's calculated

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CNBC 14 July, 2021 - 01:23pm 34 views

What is the COLA for 2022?

The annual cost-of-living adjustment, or COLA, for Social Security benefits in 2022 — usually announced in October — could be 6.1%, the highest since 1983, based on Tuesday's Consumer Price Index announcement, according to Social Security and Medicare policy analyst Mary Johnson of the Senior Citizens League, which ... BenefitsProSocial Security COLA estimate for 2022 raised to 6.1%

Social Security recipients could get their biggest cost-of-living bump in decades

WPRI.com 14 July, 2021 - 03:05pm

(WPRI) — Some relief may be coming to retirees and others collecting Social Security.

Each year the Social Security Administration announces how checks will be impacted by the cost of living based on the economy that year and one advocacy group for senior citizens is projecting a 6.1% increase in 2022 due to surging inflation.

That would be the biggest cost-of-living adjustment (COLA) hike since 1983.

In 2021, recipients received one of the lowest COLA increases in years, an increase of 1.3%, or just about $20 more a month for retirees for example. Meanwhile, prices for gas and groceries are on the rise.

In June alone, inflation jumped 5.4% from the year before as the country rapidly reopened due to the pandemic.

The Social Security Administration announces what recipients’ paychecks will look like for the following year in October. The cost of living adjustment is based on inflation data from three months prior.

Therefore, if inflation does slow down until then, the adjustment could be less than the predicted 6.1%.

Nearly 70 million Americans receive security benefits, whether they’re retired, disabled, or survivors of deceased workers.

Workers pay into the system with each paycheck.

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