Based on federal inflation data released Tuesday, an 8.7% Social Security COLA (cost-of-living adjustment) may be conceivable in 2023. A nonpartisan senior organization, The Senior Citizens League provided the assessment and discovered that the hike would increase the $1,656 average monthly retirement payment by $144.10.
By the Senior Citizens League, for the majority of existing Social Security claimants, this annual benefit boost would be the biggest COLA they have ever received. It would also surpass this year’s 5.9% increase in benefits and be the largest cost-of-living adjustment in forty years.
Social Security is hoping for an 8.7% COLA in early 2023, the largest increase since 1982! So are we! That is if we make sure the GQP doesn't get the majority & their corrupt hands on OUR benefits.
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The Highest in Four Decades
Although it won’t be as high as what experts predicted in June, Mary Johnson, a Medicare and Social Security policy analyst at The Senior Citizens League, said it will still be the highest in four decades. The computation is based on data from the consumer price index, which was issued on Tuesday and indicated that, as of August, inflation had risen by 8.3% over the previous year despite unpredictable energy and food prices.
The Consumer Price Index (CPI) for Urban Wage Earners & Clerical Workers, or CPI-W, is a subset of the statistics that the Social Security Administration uses to determine the yearly COLA. As of August, that had climbed by 8.7% over the previous 12 months.
COLA for 2023: Still Only a Projection
The Social Security Administration normally releases the authorized cost-of-living adjustment in October. Several circumstances could change between now and then that could impact next year’s rise and what amount of that money ends up in retirees’ checks. Observe these three:
Data on Inflation from September
By analyzing third-quarter CPI-W statistics from the present year to the same 3 months in the prior year, the Social Security COLA is determined. As a result, a month more of data is still needed before the final determination is made. The official COLA will vary according to how inflation performs throughout that time.
Increases in Interest Rates
The Federal Reserve’s increase in interest rates could affect the inflation numbers for September. The central bank raised interest rates by 0.75 percentage points for the second time in a row in July. Later this month, there may be another rate increase of 0.75 percentage points. According to Johnson, “it may significantly damage some consumer trust that would affect September.”
Medicare Premiums Part B
Undoubtedly, the amount of additional money Social Security recipients get in their monthly benefits in the upcoming year will also rely on the rate at which Medicare Part B payments rise.
Those premiums are frequently taken out of Social Security benefits directly. The typical Part B premium each month for this year is $170.10. In their annual report, which was published in June, the Medicare trustees predicted that the rate will remain unchanged in 2023. Typically, in November, the authorized premium for Medicare Part B for the upcoming year is released reports CNBC.
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