NEW Social Security UPDATE! | $175.10 Per Month Increase Coming in 2023?!

The exact cost-of-living adjustment, or COLA, for 2023 will be revealed in the fall but, according to the nonpartisan Senior Citizens League, the increase could be as much as 10.1%, but will most likely fall around the 9.6% range. That amount would raise the average retiree benefit by $175.10 a month. July’s Consumer Price Index reported inflation was up 8.5% over the past year, making it especially difficult for people living on fixed incomes, such as those relying on Social Security benefits. Higher inflation will factor into the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as the CPI-W, that’s used to determine this year’s COLA.

The COLA announcement for 2023 is anticipated to be around October 13th, after the September CPI report is released. If the monthly payments go up by more than 10% it would be the first time COLA has reached double digits since 1982 when it was 11.2%. In 2022, Social Security recipients received a 5.9% COLA, a substantial increase from the previous two years. According to the Social Security Administration, the average monthly benefit as of July 2022 is $1,544.70. In addition to boosting monthly benefits, the bill would make other changes, including basing the annual COLA on the Consumer Price Index for the Elderly instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers, a move that would factor in more healthcare and drug cost increases.

It would also lift the current $147,000 a year cap and subject all income above $250,000 to Social Security payroll taxes. The bill would also restore student benefits up to age 22 for children of disabled or deceased workers if the child is a full-time student in college or a vocational school. These benefits were eliminated in 1983. More than 50 advocacy groups, including the AFL-CIO, Alliance for Retired Americans, American Federation of Government Employees and the National Education Association are backing the bill. In summary, as COLAs are measured by the CPI, it is all but guaranteed that the next COLA will result in monthly checks that exceed $1,800.

The Senior Citizens League estimated that the next COLA will see an increase of 8% to 10.1%, depending on future inflation, according to the Detroit Free Press. If inflation continues at roughly the same rate, there will be an increase of about 9.6%. Since 2021, that metric has risen by an average of 2.19% a year. Over the same time period, Social Security payments have risen by an average of 3.08% a year. Based on that growth rate, the average monthly check could be $2,112 by 2030. Here’s a rundown of how average monthly Social Security payments could look like for the rest of the decade up to 2030:

2023: $1,708

2024: $1,761

2025: $1,815

2026: $1,871

2027: $1,928

2028: $1,988

2029: $2,049

2030: $2,112

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