COLA and Social Security

A 6.1% Bump in Social Security?

Provided by ATFCU Investment Advisors

The news keeps getting better for Social Security recipients.

It's now projected that benefits will increase 6.1% in 2022, up from the 4.7% forecast just two months ago. That would be the most significant increase since 1983.^1,2

It’s all about inflation. Social Security cost of living adjustments (COLA) are based on the consumer price index, which rose 5.4% in June — its largest 12-month increase since 2008. The official announcement is expected in October and, once it’s confirmed, the revised payment will go into effect in January 2022.³

More than 65 million Americans receive Social Security, and the annual cost of living adjustments are designed to help recipients manage higher costs. At the start of 2021, recipients saw a 1.3% increase.⁴

The average monthly benefit is $1,544 for retired workers. So a 6.1% increase amounts to $94 more a month. That might not be quite enough for a car payment, but it’s double the 3% raise being given to U.S. workers in 2021.^4,5

Social Security can be confusing. One survey found only 6% of Americans know all the factors that determine the maximum benefits someone can receive. If you have any questions, please reach out. We have a number of resources at our fingertips that you may find helpful.⁶

Reach out to one of our financial advisors today and set up an appointment.

Check the background of the investment professionals associated with this site on FINRA's BrokerCheck.

¹Fortune.com, July 15, 2021
²SeniorsLeague.org, May 12, 2021
³InvestmentNews.com, July 13, 2021
⁴SSA.gov, June 2021
⁵SHRM.org, June 2021
⁶FinancialAdvisorIQ.com, July 19, 2021

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