Here's Why Seniors on Social Security Could Get a Huge Raise in 2022
From gasoline to groceries, the price of common goods seems to be going nowhere but up. We can thank supply chain issues and inflation for that. But while inflation is often regarded as a bad thing -- because, after all, it makes things cost more -- it could work to seniors' benefit in the near term.
Each year, Social Security recipients are eligible for a cost-of-living adjustment, or COLA. COLAs are calculated based on data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures fluctuations in the cost of common goods and services. When inflation strikes and the CPI-W rises, seniors on Social Security are given a raise. But when the CPI-W drops or stays flat, seniors can be denied a COLA.
Over the past few months, we've seen our share of inflation, to the point where a lot of people are feeling the pain at the pump and at the supermarket. And if that trend continues, it could result in seniors getting a big Social Security raise for 2022.
Source Fool.com