BusinessHow much the Social Security COLA will rise in 2023: what to...

    How much the Social Security COLA will rise in 2023: what to expect from next week’s announcement

    How much the Social Security COLA will rise in 2023: what to expect from next week's announcement

    Retirees who receive Social Security in the United States are waiting for the annual adjustment that the cost of living (COLA) will have for your benefit checks, which will be effective by 2023.

    The final date for the adjustment to be known is approaching for retirees who, according to estimates made by analysts, could have 8.7% more in their benefit checks.

    The announcement is expected to be made on October on which the inflation data for September will be known and which will allow having the inflationary average necessary to define the COLA adjustment.

    The latest estimates from the nonpartisan senior advocacy group, The Senior Citizens League, suggested that adjusting to COLA could reach up to 10.5% in retiree benefits by 2023.

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    However, the most recent estimate of this group had a reduction to 8.7%, after it was known that year-on-year inflation, in the Consumer Price Index (CPI), stood at 8.3% for last Augustaccording to the Bureau of Labor Statistics.

    The report detailed that the drop in gasoline and energy prices gave relief to family budgets; however, the Americans suffered to meet your needs for food, housing, and medical care.

    The next CPI report, in which the inflation data for September will be released, will be published on October 13, same day in which it is expected to know the adjustment to the COLA.

    The cost of living adjustment or COLA is based on the CPI-W for salaried workers and office workers.

    To get the COLA, you have to take the average inflation rate once the data for the third quarter of the year are known: July, August and September. That data will be added and divided by three to obtain the average.

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    The resulting data for 2022 will be compared with the average data for 2021also to the third quarter, and the percentage of change for the next year, 2023, will be determined.

    Last year, the COLA adjustment was known on the same day that the Bureau of Labor Statistics published the inflation data for September 2021, so the same is expected to happen this year.

    While the 8.7% estimate for the COLA adjustment appears much lower than the previous 10.5% that had been calculated, the current data would be the largest adjustment in more than 40 years.

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    According to Mary Johnson, Social Security and Medicare policy analyst for The Senior Citizens League, only the years 1979 and 1981 saw increases higher than 8.7%.

    A COLA of 8.7% is extremely rare and would be the highest ever received by the majority of living Social Security beneficiaries today,” Johnson said in a report published by Yahoo! Finance.

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    Source: La Opinion

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