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Social Security Benefits 2023: When will the COLA increase be decided?

Senior citizens could benefit from recent inflation surge

Social Security Benefits 2023: When will the COLA increase be decided?

Inflation has drastically increased the cost of living with Consumer Price Index, an instrument used to measure inflation, indicating that the rate of inflation touched 8.5 percent in the month of July, down from 9.1pc in June.

The increase has had a knock-on effect the cost of living average (COLA) for 2023, which estimates that the rate of COLA could be 91pc, the highest it's been since in 1981 according to The Senior Citizens League.

If inflation continues to rise, COLA could rise to 10.1pc while a dip would see it touch 9.3pc.

One group that is set to benefit from the increase in COLA are senior citizens and retirees whose benefits are set to increase by 159 dollars per month or a total of 1,908 dollars for the year representing a 252 dollar annual increase.

Social Security could also go up

With two months to go before consumer price data is released, the Social Security Administration will make an announcement in middle of October on next year's benefits.

"A high COLA will be eagerly anticipated to address an ongoing shortfall in benefits that Social Security beneficiaries are experiencing in 2022 as inflation runs higher than their 5.9pc COLA," the Senior Citizens League stated.

The group also reported that the benefits received this year fell short by 58 dollars, given the recent upward swing in the cost of living.

More seniors could also receive low income assistance

The Senior Citizens League also conducted a survey that reported around 37pc of participants reported receiving low-income assistance in 2021.

The number was significantly higher than the 16pc who received needs-based assistance before the COVID-19 pandemic, according to the U.S. Census Bureau.

"The pandemic and inflation have caused significantly higher numbers of adults living on fixed incomes to turn to these programs to supplement their Social Security and Medicare benefits as prices have continued to climb," the seniors' group stated.

However while a high COLA could mean higher benefits for Social Security recipients, it could simultaneously disqualify them from receiving some low-income assistance.