As inflation continues to push the cost of living higher, those on a fixed income like Social Security are wondering what that means for them.
The rate of inflation could result in one of the highest COLA increases in recent history.
The Senior Citizens League projects the COLA increase for Social Security each year.
In 2023 the projection is 8.6%.
If it ends up being this high, over 60 million seniors can expect a bigger monthly check next year.
The average increase for 2022 was around $92 per check, with the increase of 5.9%.
In 2023 with 8.6% it would boost the average check by around $143 per month.
This means the average $1,657 check would increase to $1,800 each month.
COLA and Social Security explained
COLA stands for cost of living adjustment.
This is determined each year by the Social Security Administration using the Consumer Price Index provided by the Department of Labor.
When the CPI measures an increase in the cost of living, the SSA adjusts accordingly.
This helps Social Security recipients maintain their purchasing power.
There are 64 million Social Security recipients and 8 million SSI recipients who will benefit from the boost.