EXPLAINER: Why the Social Security COLA is jumping next year
ABC News
Rising inflation has triggered a jump in Social Security’s annual cost-of-living adjustment, or COLA, for 2022
WASHINGTON -- Rising inflation has triggered a sizable increase in Social Security's annual cost-of-living adjustment, or COLA, for 2022. The Social Security Administration announced the 5.9% COLA on Wednesday after a Labor Department report on inflation during September.
Over the last 10 years, the Social Security COLA has averaged about 1.7% annually as inflation remained low. But the economic recovery from the coronavirus pandemic has triggered rising prices for a wide range of goods and services, and that will translate to bigger checks for retirees.
WHY ARE SOCIAL SECURITY BENEFITS ADJUSTED?
Policymakers say the COLA works to preserve the purchasing power of Social Security benefits and shouldn’t be seen as a pay hike for retirees.
