Even though Social Security may go a long way in assisting retirees to afford their lifestyle, some on fixed incomes are finding it harder to make ends meet as the price keeps increasing. Fortunately, there could be a delay soon.
The following month, the Social Security Administration (SSA) will provide the COLA for 2023. To maintain Social Security’s purchasing power, benefits were boosted as a section of the COLA. We won’t learn the exact COLA until October since the SSA will hold off on making its announcement until the release of the September inflation figures.
According to the beneficiary’s birth date, Social Security funds are distributed in rolls. Recipients with birthdays from the 11th to the 20th get paid on the third Wednesday, while those born from the first to the 10th day of the month are paid on the 2nd Wednesday.
The 4th Wednesday of the month is payment day for pensioners born from the 21st to the end of the month.
Major Changes In New COLA
Until January 2023, while the new COLA will take effect, there is absolutely nothing you have to do. Since the modifications will take place automatically, you won’t have to seek a raise.
Annual COLAs frequently result in a slight increase in retirement benefits. However, due to next year’s change, which will be historic, beneficiaries should expect a boost that is substantially bigger than normal.
In the face of growing inflation, a larger benefit amount can drastically reduce the cost of essentials. Just by being informed of all the aspects that the upcoming COLA will affect your benefits, you can be as prepared as possible.
Estimation Of COLA 2023
According to estimates made by the organization Senior Citizens League based on the recent consumer price index (CPI) data from the Bureau of Labor Statistics, the COLA for 2023 might well be around 8.7%.
For the ordinary retiree, that entails an increase of around $144 each month. For context, the COLA normally increases by 1 percent to 3 percent most years. Benefit recipients received one of the greatest hikes in recent memory this year: 5.9%. With an 8.7% COLA, it would be the most since 1981 reports MARCA.
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