The estimated 2023 cost-of-living-adjustment could be 7.6%.
Social Security COLA stands at 5.9% in January 2022, the highest rise in 40 years.
Why is it going to increase again?
The Social Security COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers, 0r CPI-W. There is also a Consumer Price Index for all Urban Consumers, called the CPI-U. Read more about it here.
CPI-W is a specialized way of tracking retail prices and how they affect hourly wage workers. CPI-U is a more general index measuring what all urban consumers pay.
CPI-W focuses on the importance of food, clothing, transportation, and other goods as compared to CPI-U.
The Social Security COLA for 2023 won’t be determined until this October.
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