Social security: 2023 COLA could be at least 7.6%, surpassing this year’s historic increase
Social security: 2023 COLA could be at least 7.6%, surpassing this year’s historic increase

Social security: 2023 COLA could be at least 7.6%, surpassing this year’s historic increase


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In what could be a sign of that rising inflation may not ease at some point, at least one group has already predicted that the adjustment of the cost of living in 2023 for Social Security the recipients could be as high as 7.6% – a much bigger bump than even this year, which is already the highest in decades.

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The COLA estimate for 2023 comes from the Senior Citizens League, a non-partisan advocacy group. It bases its projection on the latest consumer price index data, CNBC reported.

This year’s COLA is at 5.9%, which is the highest in 40 years. As GOBankingRates has previously reported, the 5.9% increase sums up to an average social security benefit of $ 1,657 in 2022 against $ 1,565 in 2021. If COLA increases by 7.6% next year, the average benefit will increase to around $ 1,783 in 2023

But even that would not be enough to keep up with inflation, which hit 7.9% in February. The inability of annual increases in social security benefits to keep pace with inflation is a common complaint among senior proponents, many of whom say COLA should be based on more than just CPI data.

Mary Johnson, social security and Medicare policy analyst at The Senior Citizens League, told GOBankingRates in December that benefits should be at least partially tied to the percentage increase in Medicare Part B premiums deducted directly from most Social Security pension payments. . These premiums rose to $ 170.10 per month in 2022, an increase of $ 21.60 from last year – an increase of 14.5%.

“There are certainly many others like me who wonder how much higher social security benefits would be if our benefits were tied to the percentage increase in Medicare Part B premiums instead of the consumer price index,” Johnson said at the time.

In any case, the Social Security Administration will not determine the official COLA for 2023 until October, CNBC noted. The final number depends on inflation, which remains a wild card. While inflation has been rising in recent months, the Federal Reserve hopes to tame it through a series of rate hikes in 2022.

Learn: The current inflation rate is frightening, but not as frightening as it was during other periods of recent history (infographic)
Explore: Social Security COLA does not match inflation – These retirement savings options could help

If inflation falls, 2023 will COLA will probably also be lower.

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About the author

Vance Cariaga is a London-based writer, editor and journalist who has previously held staff positions at Investor’s Business Daily, The Charlotte Business Journal and The Charlotte Observer. His work also appeared in Charlotte Magazine, Street & Smith’s Sports Business Journal and Business North Carolina magazine. He holds a BA in English from Appalachian State University and studied journalism at the University of South Carolina. His reporting won awards from the North Carolina Press Association, the Green Eyeshade Awards and AlterNet. In addition to journalism, he has worked with banking, accounting and restaurant management. A North Carolina native who also writes fiction, Vance’s short story, “Saint Christopher,” became number two in the 2019 Writer’s Digest Short Story Competition. Two of his short stories appear in With One Eye on the Cows, an anthology published by Ad Hoc Fiction in 2019. His debut novel, Voodoo Hideaway, was published in 2021 by Atmosphere Press.


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