The largest cost-of-living increase in nearly four decades could be on the way next year for Social Security recipients.
Challenges to the supply chain have caused inflation numbers to skyrocket, with the largest increase in over a decade taking place just last month. Even leaving out oil and gas numbers, “core inflation” had its largest increase since November 1991 at 4.5%.
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The Federal Reserve said last month that they believe the sudden spike in inflation will be temporary, a belief echoed by President Joe Biden’s administration. If it proves more permanent though, it could become tenuous for older Americans living on a fixed income.
The Social Security Administration’s cost-of-living adjustments (COLA) only come around once a year, with the next one still five months away in January 2022.
Now, based on the numbers through June, the non-partisan advocacy group The Senior Citizens League says a 6.1% COLA increase could be headed for Social Security benefits, the largest single-year jump since 1983.
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This comes on the heels of one of the lowest COLA increases in recent memory just seven months ago, with 2021 seeing just a 1.3% increase.
That translated to just a $20 per check increase over 2020 for singles and a $33 increase for couples, according to Kiplinger.
The official announcement will be made by the Social Security Administration in October.