The 2022 COLA increase is 5.9% as announced by the Social Security Administration. The increase in the cost-of-living adjustment is about a $92 monthly benefit increase for the average retiree – or about $1104 per year. COLA is based on the percentage increase of the Consumer Price Index for Urban Wage Earners and Clerical Workers for the third quarter of the past year.
2022 COLA Increase: For more information read about the 2022 COLA increase watch.
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2022 Cola Effective & Payment Dates
- Retired military veterans, VA rates for compensation and pension for disabled veterans and surviving families will be effective Dec. 1, 2020 and will be reflected on the first check to be paid on Dec. 31, 2020.
- Social Security benefits will be effective beginning with December 2020 benefits, which are payable in January 2021.
- Federal SSI payment levels will begin on Dec. 30, 2020.
COLA (Cost-of-Living Adjustments) affect the ollowing individuals or areas:
- Retired military veterans
- Disabled veterans – See VA Disability Rate Tables
- Veterans’ pension benefits – Veterans Pension Rate Tables
- Survivor benefit annuitants – Survivors’ Pension Rate Tables
- Surviving families of veterans – Parents’ Dependency and Indemnity Compensation (DIC) Tables
- Social Security recipients
- Federal civilian retirees
- Supplemental Security Income
- Social Security Disability Insurance
- Eligibility for Medicare Extra Help and Medicaid
- Federal and state food and housing assistance programs
How COLA is Determined
The Bureau of Labor Statistics’ Consumer Price Index (CPI-W) determines the COLA increases. It is based on the percentage increase of the CPI-W from the third quarter of the previous year versus the current year’s third quarter (July, August, and September).
Veterans who retire during the current calendar year will receive a temporary partial COLA because they already received a military pay raise in January.
|Average (rounded to the nearest 0.001)||253.412||271.889|
|Inflation According to the CPI-W||1.3%||5.9%|
|History of COLA (cost-of-adjustments) since 1975|
|Money & Finance||COLA Increase Watch|
|VA Disability Rates||Social Security|