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Social Security Benefits Cost-of-Living Increase in 2023

By: Mary Jones

TRAVELING KNOWLEDGE

What is the U.S. inflation rate?

healthy COLA increase would simply help retirees keep pace with soaring inflation. The consumer price index leaped 8.3% in April

That Raise would far outpace 2022 Boost.

Social Security recipients got their most generous cost-of-living adjustment (COLA) in decades -- a 5.9% raise

Could seniors see their benefits rise almost 11%?

If inflation holds steady at its current pace, next-year's Social Security COLA could amount to a whopping 10.8%

Is a large Social Security COLA a good thing?

Social Security are already falling behind this year because the 5.9% COLA they received in January has by no means kept pace with recent inflation.

Not such great news after all

Next-year's Social Security COLA may end up being substantially larger than the last one. But that doesn't mean seniors will automatically have an easier time making ends meet

Bills outpacing benefits

Inflation has been so high and so much higher than the 5.9% COLA that people got, they have experienced a shortfall in their benefits

Lower Medicare premiums possible

monthly payments for those in the lowest income bracket to $170.10, up from $148.50 last year.

Other repercussions

Some 39% of seniors who receive assistance said their benefits were reduced because of the hefty adjustment for 2022

Looming Social Security problems

Since 1975, the Social Security Administration has automatically set COLAs each year based on inflation

benefits are expected to run dry.

According to the CRFB, if COLAs are at least 8.8% in 2023 and 3% in 2024, that insolvency date would come sooner, in 2033.

bigger cost-of-living adjustment

Consumer Price Index for the Elderly (CPI-E) to calculate the annual Social Security cost-of-living adjustment instead of the Consumer Price Index

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