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The Social Security cost-of-living adjustment for 2022 could be 6% to 6.1%, according to the latest estimates from the Senior Citizens League, a non-partisan seniors’ group, based on new data from the consumer price index released Tuesday.
The Social Security Administration usually announces cost of living adjustments for the following year at the end of October. Another month of CPI data will be released and included in the final calculation.
Social Security COLA is calculated based on a specific set of data, the Consumer Price Index, or CPI-W, for urban and office workers.
The senior league’s latest estimate comes amid forecasts of a potential COLA of 6.2% in August, a 6.1% adjustment in July and 5.3% growth in June.
The higher estimates were due to rising inflation.
According to data released Tuesday, the CPI for August rose 5.3% from the previous year, compared to 5.4% forecast by economists. The fact that consumer prices did not rise as expected was seen as a sign that inflation may subside.
However, the latest Senior Citizens League estimates show the highest COLAs in decades.
Social Security COLA in 2021 was 1.3%. For the average retirement benefit, it was $ 20 more per month, for a total of $ 1,543.
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