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Social Security Cost of Living Increase (COLA) for 2022: Is It Fair for Seniors?

According to several news outlets, the cost of living increase (COLA) for social security recipients for 2022 could be the largest increase in nearly 40 years. The estimated number at this point is an increase of 6.1%, up from an earlier number of 5.3%. That's the good news. Now the bad news - this huge increase is the result of escalating inflation, which is expected to continue due to government spending policies and the pandemic. And, the COLA is subject to change with three more months of numbers to report before the final amount is announced.

Attorney RJ Connelly III

"I know that discussing money and financial matters in a blog is not the most eye-catching or interesting thing to read about," says Certified Elder Law Attorney RJ Connelly III, "but it is a subject that more Americans, especially our seniors, need to be aware of especially since it appears we are heading into an inflationary period and their standards of living could be significantly affected."

For those who collect Social Security and have no other supplemental income, a 6% may seem like a lot until we realize that the average SSA benefit in 2021 is just $1,543 per month. Meaning that this increase will result in an additional $95 a month, not much when we consider the rapid price rises that are occurring.