Record-high inflation is expected to bring a large increase in Social Security benefits in 2023.
Based on the most recent Consumer Price Index report from the U.S. Bureau of Labor Statistics - that showed inflation in June surging 9.1% from the previous year – the Cost-of-Living Adjustment for 2023 will be about 9.6%, according to the latest estimates from the Senior Citizens League. That level of increase would be the highest since 1981 when it was 11.2%.
If inflation runs higher than the current average, the increase could be as high as 10.1%; lower than recent average inflation would drop the COLA to 9.3%, the League said.
That increase would include those who receive Social Security Disability Insurance, as well as people who receive standard Social Security benefits.
Currently, the average Social Security benefit is $1,656 per month, the increase would raise that by $159.
The specific amount of the COLA increase for 2023 won’t be released until fall and, whatever the final amount, seniors and other Social Security recipient will likely see much of the boost eaten away by high prices and healthcare costs.
The yearly COLA is determined based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers. The Social Security Administration is expected to announce the COLA around Oct. 13 with the release of September data.
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