COLA 2023: When will the SS increase be announced and how much will it go up?

The year 2022 has since inflation reach incredible heights as the world struggles with the hangover from the COVID-19 pandemic, supply chain issues and the impact of Russia’s invasion of Ukraine. Despite the United States‘ Federal Reserve increasing interest rates, the current rate of inflation stands at 8.5 percent.

The cost-of-living adjustment, or COLA, for Social Security for this year was already at 5.9 percent, or a 93 dollar increase from 2021, with 2023 likely to witness yet another increase. In fact the US Bureau of Labor Statistics reported that the Consumer Price Index, was already higher by 9.1 percent from a year ago.

While the rate of inflation has eased in recent months, the rate has exceeded the Federal Reserve’s target of 2pc for 18 consecutive months.

How Much will Social Security Increase by for 2023?

The final number will be announced this coming October when The Social Security Administration deliberates on the current factors affecting COLA.

There will be several factors at play when determining the exact increase with analysts and experts estimating that the increase could be anywhere between 8.7pc to a high of 11.4pc.

However, Richard Johnson, the director of the retirement policy program at the Urban Institute stated that 9pc could be a reasonable estimate.

“I think somewhere in the 9pc range is probably a reasonable guess,” Johnson told the AARP.

“It’s hard to predict exactly how, in particular, energy prices are going to evolve over the next few months. I think that’s probably the big uncertainty.”

A 9pc increase would see Social Security benefits increase by 150 dollars a month or 1800 dollars a year.

When will the final number be decided?

The Bureau of Labor Statistics is scheduled to finalise the exact number sometime in October with Social Security recipients seeing the new number reflected in their checks sent out in January, with the new amount priced in for their benefits in December 2022, the month when the latest COLA goes into effect.

Of course, we will keep you up to date right here in the US News section of MARCA in English.