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New data from the Consumer Price Index points to a possible cost-of-living adjustment of 6.2% for Social Security recipients for 2022, according to the latest estimate from the Senior Citizens League.
That’s up from an estimate of 6.1% by the non-partisan advocacy group projected last month.
The annual adjustment of the social security cost of living is calculated each year on the basis of the consumer price index for urban and office workers, or CPI-W.
The official calculation, which is usually released by the Social Security Administration in October, is based on the average of data for July, August and September.
“With a third of the data needed to calculate the COLA already in place, it increasingly appears that the COLA for 2022 will be the highest paid since 1983 when it was 7.4%,” said Mary Johnson, policy analyst social security to the Senior Citizens League. .
In 2021, the Social Security cost of living adjustment was 1.3%. For the average retirement benefit, this was $ 20 more per month for a total of $ 1,543.
Still, a more generous 6.2% increase for next year may not really be a cause for celebration. The reason: rising inflation, which pushes prices up.
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Gasoline, for example, has risen 41.8% in the past 12 months and is helping to increase the COLA estimate, according to the Senior Citizens League.
The broader consumer price index rose 5.4% in July, mainly on higher food and energy prices, according to data released Wednesday by the Bureau of Labor Statistics.
This is a developing story. Please check for updates.
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