With the new year right around the corner, many retirees are planning on how to spend their COLA.

While the official increase doesn’t take effect until 2022, retirees know it’s coming. Why not splurge a little at Christmas? There’s also the option to use it to start something new in the new year — like a new project or hobby. You could also put it toward a winter getaway at any point during the season.

But while there are plenty of great ideas on how to spend your COLA, there are also many costs out there that are threatening it before it even arrives.

Have you considered the biggest threats to your 2022 Social Security COLA? Even if you’ve got them covered, you deserve to know what’s draining away your well-deserved COLA.

3 Serious Costs That Could Threaten Your 2022 Social Security COLA

The first cost that threatens seniors’ COLAs in 2022 is medical expenses. Medicare Part B Premiums will increase, marking a record high that may impact some seniors who deal with serious medical needs.

The second cost to consider is income taxes. A raise in benefits could mean a rise in the taxes you pay on them if your household income is over the threshold. Distressingly, these thresholds are not adjusted for changes in wages or prices, resulting in more beneficiaries being taxed over time.

Speaking of rising prices, the final threat to the COLA is inflation. If prices increase along with an increase in benefits, the gains are only marginal at best — and if inflation gets bad enough, some seniors worry their 2022 Social Security COLA could be erased altogether.

Here at NORA, we want to see seniors enjoy their COLA — that means getting the full value of it, and not watching their increase be diminished through rising expenses. If you support this cause, consider signing our petition for a fair yearly COLA, then follow us on Twitter and Facebook.