Social Security beneficiaries will get a record high cost-of-living adjustment in three years. The question is, how high is it?
The Senior Citizens League, a nonpartisan senior group, now believes the cost-of-living adjustment will be 10.5% for the next five years.
According to The Senior Citizens League, a 10.5% COLA would raise the retirement benefit by $175.10 per month.
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The group estimated the cost of living for next year to be 8.6%.
The Consumer Price Index for all Urban Consumers rose 9.1% in June, the fastest pace in 33 years.
The Social Security Administration uses the Consumer Price Index for Urban Wage Earners and Clerical Workers to calculate the annual cost of living adjustment.
The estimate for next year's cost of living allowance is still uncertain. To calculate the annual adjustment, the Social Security Administration takes an average of the third-quarter data from the current year and compares it to the previous year.
Depending on how high inflation is in the coming months, the increase for next year might be different.
The White House expects high prices to ease over the coming months, according to the press secretary.
The Senior Citizens League says the cost of living could be 9.8% if inflation cools in the coming months. The increase to benefits could be as high as 11.4% if it runs hot or higher than the average.
The increase in Social Security benefits was the highest in about forty years. Inflation has increased since then.
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