NEXT year’s Social Security raise is expected to be confirmed this week – and it could boost monthly checks by almost $100.
The cost-of-living adjustment (COLA) is given to Social Security recipients when the price of consumer goods go up, known as inflation.
The COLA is calculated based on data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
When the CPI-W drops or remains unchanged, seniors are generally not given a COLA.
However, prices have rocketed recently, with the average household now spending an extra $175 on food, fuel and housing.
The COLA is always announced in October when the Bureau of Labor releases its final month of the third quarter of statistics.
This is due out this Wednesday, October 13, at 8.30am ET, meaning the Social Security Administration could then make its announcement.
No matter what the COLA ends up as, it’ll affect 55million retirees, their dependents and survivors.
The latest estimate by nonpartisan group The Senior Citizens League, based on data through August, predicts a rise of either 6% or 6.1%.
If confirmed, the increase would be the biggest rise since the allowance shot up by 7.4% in 1982.
Based on the current average Social Security benefit of $1,543, a hike of 6% or 6.1% would mean an increase of between $92.58 and $94.123 a month.
Meanwhile, those receiving the maximum payout of $3,895 each month can expect a monthly boost of between $233.70 and $237.595.
The actual COLA will come into effect from January next year.
The Senior Citizens League has previously predicted a raise of of 4.7% in June, 6.1% in July and 6.2% in August.
In comparison, the COLA for 2021 was just 1.3%, down from 1.6% in 2020.
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