![]() ![]() It wants to see the Consumer Price Index for the Elderly (CPI-E) used to calculate Social Security Cost-of-Living Adjustments (COLAs) instead of the Consumer Price Index for Urban Wage Earners (CPI-W) used currently. The Seniors Trust is committed to helping seniors by implementing a fair Cost-of-Living Adjustment (COLA). But, if consumer prices go up, like we are seeing now as the country begins to emerge economically from the pandemic, then the Social Security COLA should go up to account for these higher rates. That’s exactly what happened in 20 when the economy was struggling to recover from the Great Recession and also in 2016 when oil prices tanked. Basically, if consumer prices stay the same or fall then the COLA will be zero. It’s similar to the urban dwellers’ consumer price index that is used to report inflation. ![]() This year’s 1.3% COLA was the smallest since 2017, but still better than years when we saw no Cost-Of-Living Adjustment at all.ĬOLA’s change from year to year because they are calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers. ![]() That would be welcome news for most seniors, who received a meager 1.3% COLA for 2021.Įxperts see rising gas prices and increased consumer spending, especially due to the most recent stimulus package, as positive signs that an economy depressed by the pandemic is slowly rebounding. Early indicators show the Social Security Cost-Of-Living Adjustment could jump to 3% for next year, according to Kiplinger. ![]()
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