Inflation will likely have a big impact on next year’s COLA increase for Social Security recipients.
The COLA increase was 5.9% for 2022 based on inflation in 2021.
Every year the Social Security Administration looks at adjusting payments to help offset the cost of inflation.
Last year’s increase was the highest in almost 40 years, but if inflation continues next year may break the record.
How will inflation impact the COLA adjustment in 2023?
There may be an increase due to the high rates of inflation happening in 2022, which aren’t slowing down.
This prediction is based on the consumer price index, which is used to determine the COLA each year.
It’s still early, changes may still come to change the prediction.
The third quarter of the year, July, August, and September, are used to determine the COLA for the next year.
It is announced in October each year.