Social Security recipients whose checks haven’t kept pace with inflation this year could make up some ground in 2023.
The roughly 70 million people – retirees, disabled people and others – who rely on Social Security could receive an 8.7% cost-of-living adjustment, or COLA, next year, according to an estimate by Mary Johnson, a policy analyst for the Senior Citizen League, an advocacy group.
That would be the largest increase since 1982.
For the average retiree who got a monthly check of $1,656 this year, the bump would mean an additional $144.10 a month in 2023, boosting the typical payment to $1,800, Johnson estimates.
“A boost by that much is certainly going to ease the (budget) squeeze” for seniors, she says.
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What is the U.S. inflation rate?
This year, retirees have struggled to keep up with inflation, with the 5.9% cost-of-living increase approved last October falling short of price increases that have averaged about 9%. The consumer price index rose 8.3% in August from a year earlier, continuing to ease from a 40-year high but staying elevated because of rising food, medical care and rent costs.