Social Security payouts are adjusted annually to reflect inflation. The Consumer Price Index, which measures the annual change in prices for goods and services, serves as the foundation for this cost-of-living adjustment, or COLA. Social Security payouts grew by 5.9% in 2021 due to inflation; however, the increase in 2023 is anticipated to be much higher.
Despite the recent slowdown in inflation, financial analysts continue to forecast a rise in Social Security benefits of at least 8.7%, which would be the biggest since 1981 when the COLA was 11.2%.
How soon will we learn the Social Security benefits for 2023? Find out by reading on.
Learn more about Social Security, including how benefits are calculated, how big the increase might be the next year, and how to access your benefits online.
When the 2023 increase to Social Security benefits be announced?
The US Bureau of Labor Statistics releases its Consumer Price Index for July, August, and September during the second week of every month. This index contains information that is used to calculate the COLA.
For instance, on September 13 the agency announced August inflation data, which was 8.3%, a modest decrease from July’s 8.9%. On October 13, the CPI for September will be released. The Social Security Administration won’t make a COLA increase announcement until it has assessed the September data.
The government simultaneously disclosed the 2022 COLA rise and the September CPI last year. On October 13, if it holds true this year, we should know how much the Social Security benefit increases will be for the next year.
How much could Social Security benefits increase in 2023?
The charitable Senior Residents Association has assessed a COLA ascent of 8.7% now that the August CPI is delivered. Regardless of whether it is not exactly its previous in the year asserted 10% expansion, most beneficiaries would in any case get an extra $144 each month.
In any case, that is one of the more safe assessments. The increment would be somewhere in the range of 8.9% and 9.5%, as per Alicia Munnell, head of Boston School’s Middle for Retirement Exploration, in a MarketWatch article dated August 30.
Richard Johnson, top of the Metropolitan Organization’s retirement strategy program, told AARP around the same time that “something in the 9% region is unquestionably a sound conjecture.”
A 9% expansion would increment regularly scheduled checks by around $150.
