Next year’s Cost of Living Adjustment, or COLA, is anticipated to reach its highest level in forty years as a result of record inflation.
However, it will be at least a month before the precise increase amount is revealed.
The Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, third-quarter data is used to calculate the increase in Social Security benefits for 2023. After the publication of the September CPI report, the release of that data is anticipated around October 13. Since the Social Security Administration revealed the COLA last year on the same day that the CPI-W was released, it is reasonable to anticipate that this year’s figure will be disclosed shortly after that.
An SSA representative told the website VerifyThis.com that the 2023 COLA would be revealed in October.
The potential rise for this year is estimated to be 10%, which would be the highest increase since 1981 when the COLA reached 11.2%. Between now and the end of the month, higher inflation rates could drive it over the 10% threshold, while lower rates could bring it down to about 9.3%.
The average monthly benefit for retirees would increase by $175.10 with a 10% increase.
Benefits for SSI participants increased by 5.9% in 2022.