SOCIAL SECURITY 2022 COLA ANNOUNCED
SUMMARY
The Social Security Administration has just announced the 2022 cost-of-living adjustment for Social Security and Supplemental Security Income payments.
A SIGNIFICANT INCREASE
The Social Security Administration has announced that the cost-of-living adjustment (COLA) for 2022 will be 5.9%. This means that beneficiaries of Social Security and Supplemental Security Income (SSI) payments will see their benefit increased in 2022 by 5.9%.
The COLA is calculated using the Department of Labor’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures the change in the cost of living on a monthly basis. The increase is reflective of inflation. For context, 2022’s COLA is the largest one-year increase since 1982 (2008 saw a 5.8% increase), and the average annual increase from 2000-2020 was about 2.11%. While there have been years without a cost-of-living adjustment (2009, 2010, and 2015), the adjustment has never been negative and benefits have never been adjusted down year to year.
The Social Security Administration will be mailing COLA notices throughout December to those who receive Social Security or SSI benefits, indicating their new benefit amount. If you would like to know your new benefit in advance of that mailing, however, in early December you can log into your mySocialSecurity account at ssa.gov/myaccount and navigate to the Message Center.
Natalie Brown, CFP®
Director of Client Services
Day Hagan Private Wealth
—Written 10.13.2021.
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