What’s Behind the Soaring Social Security COLA Estimates for 2022?

June 22, 2021 by Ginger Szala

As inflation rises, the cost-of-living adjustment (COLA) that Social Security recipients can expect rises along with it. The easing COVID-19 pandemic has led to some unusual increases in certain components of the price index on which COLAs are based.

That index, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), rose 5% in May, leading The Senior Citizens League, an advocacy group, to raise its 2022 Social Security COLA estimate to 5.3% from 4.7% a month earlier.

The official COLA, based on third-quarter inflation data, will be announced in mid-October. In 2020, the COLA was 1.3%.

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Originally Posted at ThinkAdvisor on June 18, 2021 by Ginger Szala.