A cost-of-living adjustment of 8% would be the highest for Social Security beneficiaries since 1981.
"Looking at the CPI-W trends we're seeing so far this year, it's likely we'll have a COLA closer to 8% than to 3.8%," said Stephen Goss, the chief actuary of the Social Security Administration, in a June 2 webinar with the Bipartisan Policy Center on Social Security. The CPI-W is the inflation index that the Social Security Administration uses to set its annual living adjustment. Goss' reference to a 3.
"The assumptions for the Trustees Report, especially the economic assumptions, were set in mid-February of this year, prior to certain things like a war on the other side of the ocean and the spiking inflation that we've seen very recently," Goss said.
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