Last month, TSCL predicted that Social Security recipients may get a 6.1% COLA in 2022, and in May, the organization predicted that recipients may get a 4.7% COLA, which would have been the highest increase since 2009.Įach October, the Social Security Administration announces the annual COLA for the year, which provides an early precursor of what can be expected for COLAs on retirement plan contribution and benefit limits. In comparison, the Social Security COLA for monthly Social Security and Supplemental Security Income (SSI) benefits increased by 1.3% in 2021, 1.6% in 2020 and 2.8% in 2019. Social Security benefits are one of the few types of income in retirement adjusted for inflation. “With one third of the data needed to calculate the COLA already in, it increasingly appears that the COLA for 2022 will be the highest paid since 1983 when it was 7.4%,” Johnson adds. “The estimate is significant because the COLA is based on the average of the July, August and September CPI data,” says Mary Johnson, a Social Security policy analyst for The Senior Citizens League. For the month, the index rose 0.5% prior to seasonal adjustment. Over the last 12 months, the all-items index is up 5.4% before seasonal adjustment. In addition, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W)-which is used for the Social Security COLA-increased 6% over the last 12 months. 11 by the Bureau of Labor Statistics.Īccording to the BLS’s data, the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5% in July on a seasonally adjusted basis after rising 0.9% in June.
The new, updated estimates from The Senior Citizens League (TSCL) show that the annual COLA could be 6.2% next year, based on July Consumer Price Index (CPI) data released Aug. Based on new data for July, it’s starting to look like next year’s annual Social Security cost-of-living adjustment may be the highest in nearly four decades.
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