abut Social security We can go a long way to making retirement more affordable, but fixed-income pensioners inflation keep going up.
Luckily, we may soon have reprieve.of Cost of Living Adjustment (COLA) for 2023 will be announced by Social Security Administration (SSA) next month.
Benefits were increased as part of COLA to keep the purchasing power of Social Security constant.
Social Security cost of living adjustment expected to be higher than average in 2023
Severance pay Small increases are often seen thanks to the annual COLA. However, beneficiaries can be expected to be significantly larger than average. boost As a result of the historic adjustment next year.
What about next year’s de COLA?
SSAs are Inflation data for September The official COLA won’t be known until October, as it was released before it issued a statement.
of seniors leaguethe nonprofit predicts COLA could be about 8.7% in 2023, in light of the latest results. Consumer Price Index (CPI) stats from Bureau of Labor StatisticsThis equates to a typical retiree increase. $144 per month.
To put things into perspective, COLA typically 1% to 3% most years. This year, the beneficiary earned his one of the highest pay raises in recent memory: 5.9%.this is largest cola ever since 1981, 8.7%.
No action is required until January 2023, when the new COLA takes effect. There is no need to request an increase as it will be changed automatically.
Larger benefits can significantly lower the cost of basic necessities in the face of rising inflation. Just know how next year’s COLA will affect your benefits. , may be as ready as possible.