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A 6.1% Bump in Social Security?

  • Writer: Michael Snowhite
    Michael Snowhite
  • Aug 4, 2021
  • 1 min read

COLA and Social Security.

The news keeps getting better for Social Security recipients.


It's now projected that benefits will increase 6.1% in 2022, up from the 4.7% forecast just two months ago. That would be the most significant increase since 1983.1,2


It’s all about inflation. Social Security cost of living adjustments (COLA) are based on the consumer price index, which rose 5.4% in June — its largest 12-month increase since 2008. The official announcement is expected in October and, once it’s confirmed, the revised payment will go into effect in January 2022.3


More than 65 million Americans receive Social Security, and the annual cost of living adjustments are designed to help recipients manage higher costs. At the start of 2021, recipients saw a 1.3% increase.4


The average monthly benefit is $1,544 for retired workers. So a 6.1% increase amounts to $94 more a month. That might not be quite enough for a car payment, but it’s double the 3% raise being given to U.S. workers in 2021.4,5


Social Security can be confusing. One survey found only 6% of Americans know all the factors that determine the maximum benefits someone can receive. If you have any questions, please reach out. We have a number of resources at our fingertips that you may find helpful.6


Citations

1. Fortune.com, July 15, 2021

2. SeniorsLeague.org, May 12, 2021

3. InvestmentNews.com, July 13, 2021

4. SSA.gov, June 2021

5. SHRM.org, June 2021

6. FinancialAdvisorIQ.com, July 19, 2021

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Investment Advisory Services offered through Retirement Wealth Advisors, Inc. (RWA) an SEC Registered Investment Advisor. Michael Snowhite, California Educators Financial & Insurance Services, Retirement Wealth Advisors Inc. and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

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