Estimates indicate that the Social Security cost-of-living adjustment for 2022 could be as much as 6.2%.
This biggest COLA increase in four decades will affect monthly checks for retirees, disabled Americans on Social Security disability and veterans drawing VA disability benefits.
The COLA increase is being driven by inflation, which unfortunately means that inflation will have all of these people paying more at the grocery store, at gas pumps, and pretty much everywhere else. Everything is 6% more expensive and is only the minimum needed to maintain the purchasing power that you’ve had all along. Additionally two other items — Medicare Part B premiums and taxes — will likely reduce the value of the COLA increase for many.
Social Security’s cost-of-living adjustment is calculated each year using the Consumer Price Index for Urban Wage Earners and Clerical Workers, also known as the CPI-W. The final calculation for 2022 will be based on data through the third quarter.