It’s not all bad news out there. The Social Security Cost-of-Living Adjustment (COLA) for 2022 will be the largest since the early 1980s. This calculation is based on the average third quarter inflation rate for urban wage earners and clerical workers (known as CPI-W) each year, which means that it is on track to be above 8%. While this doesn’t necessarily make up for low COLA adjustments since 2009, it is positive for those collecting social security, especially if energy prices and headline inflation decline.

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