Major inflation-driven boost in Social Security checks likely before 2023

Greater inflation-driven control of Social Security and, yes, hope for some relief from the headaches caused by high prescription drug costs is on the horizon. And for many retirees, the cutbacks can’t come fast enough.

Inflation is unforgiving for lower-income consumers, including millions of retirees, who have little or not much savings to tap as the costs of gas, groceries and rent mount.

However, thanks to rising inflation, those who receive Social Security benefits can look forward to a Social Security benefit that is about 8% to 9% higher by 2023, based on early estimates.

Additional $1,800 per year may lie ahead

On average, a retiree could see about $150 extra per month — if there’s a 9% cost-of-living adjustment to Social Security for next year — based on a sample of current benefits of about $1,656 per month. A cost of living adjustment in this example would be an additional $1,800 per year.

We will have to wait until October for the official 2023 cost of living adjustment to be announced by the Social Security Administration.

“This will be one of the highest COLAs ever paid in the history of the program,” predicted Mary Johnson, a Social Security policy analyst for The Senior Citizens League, a nonprofit advocacy group.

Social Security inflation adjustments in 2023 could be one of the largest in history.

Based on consumer price index data for the year through July, the COLA adjustment could be around 9.6% if inflation continued at a similar pace.

If inflation picks up in the coming months, that adjustment could rise slightly to around 10.1%, according to Senior Citizens League estimates.

If inflation cools further in the coming months, the adjustment could taper off and could be estimated at a range of 8% to 9%.

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