As per the Senior Citizens League, a roughly 10% increase in Social Security benefits might be implemented next year in an attempt to maintain parity with inflation (SCL).
Inflation was 8.5% higher in July, as per the Consumer Price Index (CPI). As such, life has become considerably more difficult for persons with fixed incomes, such as those who rely on SS benefits.
When it is issued, the cost-of-living-adjustment, or COLA, for next will have its basis on 3rd-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
The announcement for COLA 2023 is expected around October 13, following the release of the CPI data for September.
If the CPI September report indicates inflation is higher than estimated inflation, the COLA for 2023 might be increased to 10.1%.
If the COLA rises to 10.1%, this will be the first time it will reach double figures since 1982. Back then, it was 11.2%.
Social Security Beneficiaries Received A Bump
In 2022, Social Security beneficiaries earned a 5.9% COLA rise, a significant increase over the last two years.
The average payment per month up till July 2022, according to the Social Security Administration (SSA), stood at $1,544.70.