With sky-high inflation a major concern for many across the United States, one of the big questions is how much Social Security payments will increase in line with soaring prices.
That will be determined by the Social Security method of COLA, which adjusts benefits to the cost of living, and will be particularly important at a time when inflation is at its highest since 1981.
What is COLA?
COLA stands for Cost-of-Living Adjustment which reflects the annual changes to social security in line with the rising prices that impact daily life.
In 2022, the COLA adjustment for around 70 million Americans was at 5.9 percent.
It reflects the Consumer Price Index (CPI), which measures inflation, and figures in March showed an 8.5 percent increase in the cost of living.
What will 2023 Social Security increase be?
The expected COLA for 2023 is higher than in 2022, and The Senior Citizens League estimate that it could go up to 8.6 percent.
That would mean that the average benefit payment could increase by around $143, hitting $1,800, while the maximum amount could go up by as much as $361 to $4,555.
Is SS increase 2023 the biggest ever?
If the 8.6 percent increase figure is accurate, it would be the largest rise since 1981.
Last year's 5.9 percent increase was the largest since 1982, but this would be the highest since 1981 when the increase was 11.2 percent, second only to 1980 when benefit payments increased by 14.3 percent in a single year.
Since then, the last 15 years have seen three years with no increase to social security benefits.