Industry News
CRS Publishes Report on Social Security’s COLAs and Projected Financial Shortfall
On May 17, 2022, the Congressional Research Service (CRS) published its report, Social Security: Cost-of-Living Adjustments (COLAs) and the System’s Projected Financial Shortfall. The report provides an overview of the Social Security program, its projected financial shortfall, and annual COLAs. It also describes financing the COLAs and the impact of COLAs on the projected financial health of the Social Security programs.
According to the report, “Recent news articles have suggested that the historically large 5.9% cost-of-living adjustment (COLA) payable in January 2022 will have a negative impact on the projected financial shortfall of the Social Security programs. If inflation persists, another large COLA may be payable in January 2023.”
The report is available here.