Homestimulus checkCOLA Social Security Payment Schedule 2022 – Millions Expect Benefits to Increase to $1,656 in 2023
COLA Social Security Payment Schedule 2022 – Millions Expect Benefits to Increase to $1,656 in 2023
August 18, 2022
SENIORS can receive a raise of nearly $159, bringing benefits to $1,656, subject to the cost of living (COLA) adjustment.
Based on new CPI-W data through July, COLA could be 9.6% for 2023, the Senior Citizens League (TSCL) estimates.
Mary Johnson, social security and health care policy analyst at TSCL, said it would increase the average retirement benefit from $1,656 by $158.98 a month.
If the rate goes up, the COLA could be 10.1 percent, but if it continues to fall, the adjustment could be 9.3 percent.
Where the COLA ends up depends on the consumer price index for urban wage earners and white-collar workers (CPI-W) in the third quarter.
The U.S. Bureau of Labor Statistics said U.S. inflation will rise to 8.5 percent in July 2022.
Read our COLA blog for more news and updates…
Survey Finds Americans Will Claim Early
A recent survey by the Nationwide Retirement Institute found that Americans ages 26 and older plan to claim their benefits early.
42 percent of respondents plan to apply for Social Security benefits early while continuing to work.
That is 6 percent more than last year.
The poll included 1,853 adults and was conducted between April and May.
Tax Refund Scams For Hoosiers
Indiana state officials are urging Hoosiers not to consider emails, texts, and phone calls regarding tax refunds or inflation cuts in Indiana.
Please note that your refund will only be made by direct deposit or paper check.
In addition, if you receive anything requesting personal or financial information, such as social security numbers or bank account numbers, you must report it immediately.
You can report this online to the Indiana Attorney General’s office by filing a complaint with the office’s consumer protection department.
The 10 lowest-ranked states to live in
WalletHub ranked the following states as the lowest for livelihood due to affordability, economy, education and health, quality of life, and safety.
Top 10 States to Live in
Some states are better than others — at least according to a WalletHub study.
The personal finance publication ranked every state in the nation based on affordability, economy, education and health, quality of life, and safety.
Here are the top 10 states:
Understanding COLA, continued
In 1975, Congress passed a COLA provision that provided automatic annual COLAs based on the annual increase in the CPI-W.
Before 1975, Congress enacted special legislation to increase Social Security payouts.
COLAs in 1975 were calculated using the increase in CPI-W from the second to the first quarter of 1974.
They were based on increases in CPI-W from the first quarter of the previous year to the first quarter of the current year from 1976 to 1983; since then, COLAs are based on the CPI-W from the third quarter of the previous year to the third quarter of the current year.
Because inflation was significant in the 1970s, COLAs were used to secure compensation-related contracts, real estate contracts, and government benefits.
The CPI-W is determined by the Bureau of Labor Statistics (BLS) and is used by the Social Security Administration (SSA) to calculate COLAs.
The COLA formula is calculated by multiplying the percentage increase in CPI-W from the third quarter of one year by the third quarter of the following year.
This information is regularly updated on the SSA website.
How the COLA of 2023 can change
While The Senior Citizens League currently sees COLA rise to 8.6 percent for 2023, that could change in the coming months.
The Federal Reserve is taking action to cool high economic demand.
The central bank has raised interest rates twice this quarter.