Huge Social Security COLA spike could be on the way — because of inflation
by Olafimihan Oshin - 09/14/22 12:02 PM ET
People on Social Security could see a huge spike in their checks from a cost-of-living adjustment (COLA) that is itself a result of inflation.
In a letter sent on Tuesday, Senior Citizens League policy analyst Mary Johnson said recipients could see an 8.7 percent COLA spike next year.
That’s a huge increase reflective of the high inflation people are experiencing across the country, though at the same time, it is actually a smaller COLA than the Senior Citizens League projected just a month ago. At that time, Johnson was forecasting a 9.6 percent hike.
“After evaluating the August consumer price data, what I’m finding clearly illustrates the weakness in our inflation adjustment system for Social Security. My COLA estimate has dropped to 8.7% almost a full percentage point from the 9.6% that I forecast last month, Johnson wrote in her letter.
“That was a significant drop, but the Consumer Price Index, CPI-W (CPI-W), the index that Social Security benefits are based on, has decreased even —by 1.10 percentage point year over year to 8.7%,” Johnson stated.
The 8.7 percent COLA would boost the average retiree’s benefit from $1,656 received monthly to $1,800 by next year, an increase of $144.10.
This would also the highest COLA increase since 1982, when the Social Security Administration estimated a 7.4 percent increase in the cost-of-living adjustment.
more
https://thehill.com/policy/finance/3642596-huge-social-security-cola-spike-could-be-on-the-way-because-of-inflation/
