Social Security's 5.9% Raise Still Lags Behind Inflation Rate
Earlier this year, seniors on Social Security got some good news. Come 2022, benefits will be going up by 5.9%, representing the largest increase in decades.
Why such a big jump? It boils down to a big uptick in the Consumer Price Index (CPI), which measures fluctuations in the cost of consumer goods.
Social Security raises (known as cost-of-living adjustments, or COLAs) are based on third-quarter CPI data. Some years, the CPI's reading is such that seniors get a very small COLA or none at all. But because inflation has been so rampant, seniors will finally get a notable boost to their benefits in the new year.
Source Fool.com
