Social Security's 5.9% Raise Isn't All Good News
For months, seniors on Social Security have been waiting to hear what 2022's cost-of-living adjustment, or COLA, will look like. That number is calculated based on third-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), and so a COLA couldn't be determined until inflation data for September was made available.
This week, the Social Security Administration announced that seniors will be in line for a 5.9% COLA in 2022. That's a major improvement from the 1.3% they received for 2021.
Or is it? A giant COLA might seem like a wonderful thing for seniors. But in reality, it's not the massive windfall Social Security recipients might think it is.
Source Fool.com
