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The Social Security cost-of-living adjustment will likely be bigger next year. But there are reasons why retirees’ monthly checks might not go as far

Lorie Konish | CNBC | Aug 24th, 2021
Category: Financial News

The Social Security cost-of-living adjustment for 2022 potentially will be the biggest in 40 years.

Estimates indicate the annual boost could be 6.2%, prompted by rising inflation.

But rising prices on grocery store shelves and at gasoline pumps aren’t the only reasons why those bigger monthly benefit checks will likely not go as far.

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 calculation for 2022 will be based on data through the third quarter.

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