Recent news about the Social Security cost-of-living adjustment for 2022 has started to make waves. Some reports are putting estimates for the next COLA at 4.5%, and many Social Security beneficiaries are likely starting to plan how they’ll use these funds.
Yearly COLAs are calculated based on the costs of goods and services in the Consumer Price Index for Urban Wage Earners and Clerical Workers. So far, in 2021, prices for a variety of items are up. Gasoline, airfare, and used cars and trucks, for example, are all more expensive than last year. This potential COLA is not set in stone. However, it would help ensure that Social Security benefits keep up with inflation.
Benefits of Higher COLAs
A few ways that this higher COLA could help those who receive Social Security include:
- It could help seniors save for future expenses like in-home care
- Beneficiaries could spend more on things they enjoy, like quality time with loved ones or fun outings
- With the price of prescription drugs dropping over the past year, seniors could feel less stress about affording these essential items
- A higher COLA can help seniors draw less from their retirement savings
- It could give retirees more independence and flexibility
While this one-time higher COLA would be helpful during this time of increased inflation, Social Security beneficiaries might have concerns about what will happen next year. That’s why NORA supports The 3% Guaranteed COLA for Seniors Act. This legislation would help seniors afford more of what they need without worrying about the future of their benefits. This act also proposes basing future COLAs off of an index that takes into account the specific needs of seniors.
NORA wants retirees to receive all of the benefits they’ve earned. Want to voice your support for this legislation? Sign our online petition! We also invite you to share it with your friends and family members and to join us on Twitter and Facebook today!
