Social Security Payments Could Increase By 9.6% In 2023
As inflation continued to stay high despite the July decrease in the Consumer Price Index (CPI), the Social Security Administration is set to increase the monthly benefits for Social Security beneficiaries. According to the Senior Citizens League (SCL), the organization estimates that the amount increased could be as much as $159 for some recipients. The new change is set to be in place by 2023.
In an estimate put out by the SCL, the increase is predicted to be around 9.6% to adjust for the high inflation in recent months. Though the increase would be far from needed relief, the added amount should be a temporary measure to ease the burden for many seniors.
According to the federal government’s cost of living adjustment (COLA), the percentage for the increase moved up to 40-year-highs for the majority of 2022, putting a huge strain on the elderly. The adjustment to social security is likely to be the biggest increase since 1981 during the Reagan administration.
If the inflation rate continues to decrease, the rate is likely to go down to 8% the following year for an increase in the Social Security amount. Though the current indication is 9.6%, the Administration is waiting for the results of the August and September CPI rates.