2022 saw a great boost in terms of Social Security benefits, the highest in four decades but will social security get a raise in 2023? Well, according to the experts, they predict that next year’s cost of living adjustments will be even higher. Retirees on Social Security could see monthly benefits rise an average of $159 in 2023 and all of this can be accounted to the ever-rising inflation in America.
The high inflation all around the globe, especially in America points to a possible 9.6% Social Security cost-of-living adjustment we can all see in 2023. This is an estimate based on data and insights released on Wednesday. How much increase we can expect and how things will go forward is still not revealed and it looks like there are still a couple of months before we get an official announcement from Social Security Administration about the official number and how much one can expect.
Everything About Social Security Raise in 2023
Though the red-hot inflation is starting to cool, according to the latest data points from the government, Social Security beneficiaries are still likely to get a record high cost-of-living adjustment going into 2023. According to The Senior Citizens League which is a non-partisan senior group, it is likely that Social Security benefits can go up to 9.6%, according to the Consumer Price Index data that was released recently.
This rise in Social Security benefits in 2023 would amount to an additional $158.98 per month on top of the average retiree benefit of $1,656 per month that already exists. This was COLA or cost of living adjustment by 5.9% from the previous year which amounted to $93 a month.
If all goes well, the 2023 adjustment “will be one of the highest COLAs ever paid in the history of the program,” according to Mary Johnson who works as a policy analyst at the nonprofit Senior Citizens League.
We do have an answer to “Will Social Security get a raise in 2023” but what the amount will be is still not sure and will not be revealed by The Social Security Administration until October 2023. According to the Senior Citizens League, the primary estimate was about 8.6% but the recent predictions have shifted, and it looks like the COLA adjustment can go up by 9.6%. However, if we see a sudden spike in inflation before the official COLA announcement, the adjustment can increase by 10.1%. Back in July, Marc Goldwein, the policy director of the organization hinted at an 11.4% increase based on inflation, higher than the 11.2% increase that we last saw back in 1981. If Goldwein is right, this COLA adjustment will amount to a check of almost $1850 per month as Social Security.
When Will People Get Information About Social Security To Raise in 2023?
After answering “will social security get a raise in 2023”, the next most important that comes is when will people know about the social security benefits for 2023? The Bureau of Labor Statistics is scheduled to reveal data about inflation on October 13th and soon after we can expect official news on the cost-of-living adjustments for 2023.
After the announcement, beneficiaries are supposed to get detailed information on their specific benefit rate by December. One can even visit the My Social Security Website for more information on the same. Typically, the COLA goes into effect by December and beneficiaries will start receiving the checks starting January 2023.
Why So Much Extra Raise For Social Security?
Another big question that comes up after “Will Social Security get a raise in 2023” is Why are retirees getting so much extra money? Well, the huge increase in Social Security checks can be directly linked to the inflation that has been rising all this while. This is a necessary step to ensure that retirees can easily maintain their standard of living and the COLA is intended to help ensure benefits are at par with the rising inflation. Though they are getting “extra” money, inflation means they will also spend a high amount on their daily lifestyle. Retirees should keep in mind how inflation is going to impact their lifestyle even when they are seeing a huge COLA.
Stay tuned for more updates, Lee Daily.