As inflation continues to skyrocket, it’s believed that the 2023 COLA increase could be another large one.
In 2022 the increase was 5.9%, one of the largest increases in recent U.S. history.
The new amount went into effect on Jan. 1, 2022.
What will the COLA be for 2023?
The Consumer Price Index is what determines the COLA increase for the next year.
According to the CPI, the 12 month rise from March of 2021 to March of 2022 was 8.5%.
This is the largest increase since 1981, leading people to believed the COLA increase will be much higher for 2023.
COLA: 2023 increase could boost maximum monthly payment to $4,567
Various theories on the inflation increase includes the war between Russia and Ukraine as well as stimulus cash sent by the government.
The current COLA prediction is 8.9% for 2023.
The average payment for 2022 is $1,657 per month.
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With an 8.9% increase, that would bump monthly average payments to $1,804.
The most someone can get per month in 2022 is $4,194, which would rise to $4,567 in 2023 with an 8.9% increase.
The previous prediction for 2023 was 7.6%.
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