Social Security beneficiaries could see an increase of around 10% in 2023 as inflation continues to erode buying power.
The exact cost-of-living adjustment, or COLA, for 2023 will be revealed in the fall but, according to the nonpartisan Senior Citizens League, the increase could be as much as 10.1%.
That amount would raise the average retiree benefit by $175.10 a month.
July’s Consumer Price Index reported inflation was up 8.5% over the past year, making it especially difficult for people living on fixed incomes,
such as those relaying on Social Security benefits.
Higher inflation will factor into the Consumer Price Index for Urban Wage Earners and Clerical Workers,
known as the CPI-W, that’s used to determine this year’s COLA.
The COLA announcement for 2023 is anticipated to be around Oct. 13,
after the September CPI report is released.
If the monthly payments go up by more than 10% it would be the first time COLA has reached double digits since 1982 when it was 11.2%.
In 2022, Social Security recipients received a 5.9% COLA, a substantial increase from the previous two years.
According to the Social Security Administration, the average monthly benefit as of July 2022 is $1,544.70.