Social Security recipients could be in line for one of the biggest cost-of-living adjustments next year as consumer prices continue to surge.
The Senior Citizens League, a nonpartisan senior group, estimated the adjustment could be as high as 5.3%, based on Consumer Price Index data recently published by the Labor Department. The data showed that consumer prices spiked 5% in May from a year prior, the fastest year-over-year jump since 2008.
Should Social Security beneficiaries see a 5.3% increase to their monthly checks next year, it would mark the steepest annual adjustment since 2009, when recipients saw a 5.8% raise. In 2021, Social Security benefits increased by 1.3%.
The adjustment is calculated based on the latest Bureau of Labor Statistics data on the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The Senior Citizens League previously predicted the COLA for 2022 could be 4.7% based on data from April. “That’s inflation on steroids, mostly attributable to energy prices,” said Mary Johnson, Social Security analyst for the Senior Citizens League.