The Kiplinger Letter is forecasting that the annual cost-of-living adjustment for Social Security benefits for 2022 will be 6.3%, the biggest jump since 1982, when benefits rose 7.4%. That would also be higher than The Kiplinger Letter predicted earlier this year.
The final adjustment in October could be a little different, as the inflation rate for July through September has yet to be determined.
Social Security COLAs are calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers. If prices don’t increase or fall, the COLA is zero. That happened in 2010 and 2011, as the economy struggled to recover from the Great Recession, and again in 2016, when plummeting oil prices wiped out the COLA for that year. In 2020, the COLA increased payouts by 1.3%.
We'll know in October but for now the COLA for Social Security benefits for 2022 is trending higher. If you have questions go to yoursafemoneyshow.com.
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