Tuesky-high inflation is a major concern for many around the world. United Statesone important question is how much social security payments will increase due to rising prices.
This will be determined by the COLA social security method, which adjusts benefits for the cost of living, and will be especially important at a time when inflation is at its highest level since 1981.
What is KOLA?
COLA stands for Cost of Living Adjustment, which reflects annual changes in the social security system in line with price increases that affect daily life.
In 2022, the COLA adjustment for approximately 70 million Americans was 5.9 percent.
It reflects the Consumer Price Index (CPI), which measures inflation, and data for March showed an 8.5% increase in the cost of living.
What will be the increase in social security in 2023?
The expected COLA for 2023 is higher than in 2022, and the League of Senior Citizens estimates it could rise to 8.6%.
This would mean that the average benefit payment could increase by about $143 to $1,800 and the maximum could increase by $361 to $4,555.
Is SS 2023 the biggest increase ever?
If the 8.6 percent growth figure is correct, it would be the biggest increase since 1981.
Last year’s growth of 5.9 percent was the largest since 1982, but it will be the highest since 1981, when it grew by 11.2 percent, second only to 1980, when benefits increased by 14.3 percent in one year.
Since then, there has been no increase in Social Security benefits for the past 15 years for three years.