If there’s any good news about inflation, it’s that Social Security benefits will climb.
Since Social Security is indexed to the cost of living, benefits could rise by 10.5% next year, or about $175 a month (on average).
With inflation just below double digits, that’s the fuel behind this increase. “The estimate is based on the June reading for an inflation measure the Social Security Administration uses to calculate the annual cost of living adjustment, or COLA,” according to CNN. “It rose by 9.8% over the past 12 months, compared with the 9.1% annual jump for the broader and better known Consumer Price Index for All Urban Consumers.”
“Just how much more retirees, Americans with disabilities and other recipients will actually receive won’t be determined until the fall. The official adjustment, which the agency releases in October, is based on average inflation during the third quarter as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers, known as CPI-W.’
Wait, there’s more: “If inflation increases in the coming three months, the 2023 adjustment could be 11.4%, the Senior Citizens league said. “If price hikes moderate, the benefit bump could be 9.8%.”