The COLA increase for Social Security recipients in 2021 was announced for 2022 at 5.9%, one of the largest in recent history.
Despite that being considered such a high boost, the rate of inflation has surpassed that and is now over 7%.
How Social Security benefits could increase next year
The rate of inflation for Feb. 2022 was 7.9% compared to last year.
This is the highest rate in more than 40 years.
If this continues it’s very likely Social Security benefits will increase in 2023.
The COLA increase is based on the third quarter of the year, so the numbers will be based on July, August, and September.
Why Social Security recipients getting bigger checks may not be better
The 5.9% increase was celebrated when it was announced, but in the bigger picture they’ve only lost purchasing power.
The rate of inflation has already surpassed the COLA increase, essentially negating it.
If the rate continues at the pace it is, there could be an increase as high as 7%.
While a higher COLA sounds good, it probably isn’t.
The cost of living and things like Medicare will rise in price.