Social Security recipients could be looking at an 8.6% COLA in 2023.
This increase is to offset the impact of inflation.
What is the inflation rate?
About 70 million people rely on Social Security. Next year, the cost-of-living-adjustment (COLA) could see an 8.6% boost. The boost would end up being an additional $142.50 per month. Read more about it here.
This April, inflation reached 8.3%. However, that means that the 5.6% adjustment this year hasn’t been going as far as originally thought. Beneficiaries have openly said that it is not enough money.
The COLA 2022 was set by the Social Security Administration (SSA) last October. That means the adjustment was set before inflation was exacerbated by the Russian invasion of Ukraine.
The SSA bases the annual COLA on the consumer price index for urban wage earners and clerical workers (CPI-W). Inflation is expected to gradually ease over the course of the year. That means the 8.6% estimate may differ from the actual COLA that will be announced in October.
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