Social Security and SSI benefits set to increase significantly

With inflation soaring, Social Security benefits are expected to rise significantly in 2023. (Disability Scoop)

Social Security and Supplemental Security Income recipients could see their monthly payments rise again next year by the highest amount in decades, experts say.

Thanks to rising inflation, the automatic cost-of-living adjustment, or COLA, that benefit recipients receive each year could be much larger than usual.

“It’s likely we’ll have a COLA closer to 8% than 3.8%,” Social Security Administration chief actuary Stephen Goss said during a briefing earlier this month, according to CNBC. .

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A recent report by the Senior Citizens League suggests benefits could climb by around 8.6%, which would be the biggest increase since 1981.

The COLA is intended to ensure that Social Security and SSI benefits keep up with inflation. The adjustment is based on how any increase in the average consumer price index – calculated by the US Department of Labor’s Bureau of Labor Statistics – during the third quarter of the current year compares to the same period of the previous year.

COLA for this year was 5.9%, the largest automatic increase since 1982. In contrast, COLA has increased an average of 1.88% per year over the past 10 years.

The Social Security Administration will announce in October what the COLA will be for 2023.

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