Each year Social Security checks get a cost-of-living adjustment.
What is the projected COLA increase for 2023?
Stimulus payments of $200 to $1,050 going to California residents
How much is the increase?
Each year in the fall, the Social Security Administration (SSA) announces its annual cost-of-living adjustment (COLA). The annual adjustment is made to account for inflation. The non-profit Committee for a Responsible Federal Budget (CRFB) found that at the current rate of inflation, the adjustment might be doubled from 2022.
For 2022, the COLA adjustment was 5.9%. According to reports form the CRFB, with the current rate of inflation the adjustment could reach 10.8% for 2023. This would be the highest COLA increase since 1981.
On average, Social Security beneficiaries get $1,540 each month. With the CRFB’s projected increase, an additional $154 would be added to each months check. That would push the average monthly benefit to $1,694.
The COLA is based on inflation data that comes out of the third quarter. That means data from July, August, and September will be used to calculate the COLA. That means that the projection from CRFB will likely fluctuate in the coming weeks.