Will Social Security Rates Really Go Up 6% Next Year?

Social Security could announce a 6% cost-of-living adjustment for 2022. Inflation continues to rise this year. Adam Hartung of Spark Partners says our current inflation is a major motivator in the decision. "We had no inflation in 2020, and we've had a boomerang this year where energy costs and other components have gone up substantially." The consumer price index had it's largest 12-month increase in 13 years.

This Isn't Your Father's Retirement

Hartung says on one hand, the bump will be great for those 62 and older. "Inflation affects people differently - specifically their age and where they live. If you're over 61, and are in your house, and you perhaps have it paid for - or you have an established mortgage rate - and your taxes aren't escalating excessively, you're going to come out ahead!"

The consumer price index used to adjust Social Security benefits may actually change in the meantime. So---on the other hand, the amount could change to a lower percentage before the adjustment is figured.

photo: GettyImages

Social Security benefits identification card with 100 dollar bills

Social Security BenefitsPhoto: iStockphoto

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