Record inflation has dominated news headlines for most of the summer, and some experts are saying the controversial “inflation reduction” bill simply won’t work.
However, there’s an upside to this dreary news if you’re a senior citizen. Due to the almost unprecedented jump in cost of living, your social security paycheck should increase significantly in 2023.
Now, we know by about how much — and when they’re going to announce it.
Typically, social security checks reflect the previous year’s cost-of-living statistics. And given just how expensive many things have gotten in 2022, it stands to reason that social security will have to increase.
The only question right now is: will the boost be big enough to offset the rising inflation?
Well, it’ll certainly help many seniors, because they’ll be looking at a historic increase to their paycheck. In fact, chances are it will be the single biggest percentage increase in over 40 years (since 1981).
From The Blaze:
American seniors and others who receive monthly social security checks will likely see a big cost of living raise in 2023.
According to experts, social security benefits are likely to increase anywhere from 9.3% to 10.1% next year.
Should they increase by 9.6%, the average social security recipient, who currently collects $1,656 every month, will receive an additional $158.98 on each check, resulting in about $1,900 over the course of the entire year.
The country suffered through a grave recession in the late ’70s, which is why the COLA increase was massive in ’81: social security jumped 11.2 percent.
And if the 2023 increase does get boosted by over 10 percent, that will be the fourth-highest increase in the past 50 years. This year, benefits went up nearly 6 percent, which more than doubled almost every increase since ’82.
Even so, a 10% increase next year might just barely keep up with rising inflation.
The other problem facing seniors is the increasing costs for Medicare, which is contributing to a lot of quality-of-living issues. The Senior Citizens League estimated that despite the 5.9% boost last year, social security checks still fell $58 short.
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The actual cost of living is just so high that even historic COLA increases struggle to keep up.
Then there’s the issue of the pandemic, which has forced many dependents to turn to other forms of assistance. 37% of those surveyed said they received some other kind of government assistance in 2021, a 21% jump.
Said SCL’s Mary Johnson:
This suggests that the pandemic and inflation have caused significantly higher numbers of adults living on fixed incomes to turn to these programs to supplement their Social Security and Medicare benefits as prices have continued to climb.
So, when will seniors learn about the COLA increase for 2023?
Johnson said the Social Security Administration (SSA) should make that announcement on October 13.
At that point, senior citizens may or may not feel a little better about their financial position going into the new year. A lot will depend on what the inflation numbers look like at that time as well.