Social Security recipients this year saw a COLA increase of 5.9%, one of the highest in recent history, but what will 2023’s be?
Despite this being one of the highest increases in almost 40 years, seniors are still struggling to afford anything.
This is because the rate of inflation has exceeded that COLA increase for 2022.
With inflation rising as high as it has, the Senior Citizens League estimates the potential for a 7.6% increase next year.
At this moment the rate of inflation according to the CPI-W is around 8.6%.
7.6% for 2023 would be high, but it’s been higher.
In 1980 the highest ever was 14.3%, while in 1979 it was 12.4%.
Inflation and COLA now
As seniors struggle to get by on their 5.9% increase, they continue to watch prices rise around them.
The COLA is supposed to protect them from losing purchasing power.
That doesn’t appear to be the case this year, as seniors appear to have lost 32% of their purchasing power.