Social Security Updates To Know for August 2022

Social Security's broad strokes have remained the same since it was created, 

But the details are constantly changing. Even if you haven't yet received benefits, 

Keep an eye on benefits, earning limits, cost-of-living adjustments, and more.

Watch the Inflation Readings

Changing Social Security payouts each year are largely determined by inflation. Inflation-based cost-of-living

As inflation can quickly erode the value of a dollar, Social Security recipients without a COLA

Would soon find themselves far behind in terms of the purchasing power of their benefits.

In calculating the COLA, the SSA uses an index known as the CPI-W, which is a close relative

Of the CPI. In July and September, the SSA calculates the COLA based on the change in the CPI-W.

Inflation has skyrocketed in 2022, reaching 9.1% in June, and predictions for the 2023 

COLA have skyrocketed as well. Depending on how hot inflation remains through September, 

The 2023 COLA could reach anywhere between 9.8% and 11.4%. To get an early indication 

Of the possible COLA adjustment before it is formally announced in October, 

keep an eye on CPI-W readings throughout the COLA determination period.

Swipe Up to Read More Stories

Swipe Up