The record 2023 Social Security benefits increase could be lower than previously expected as inflation eases, according to a new forecast from The Senior Citizens League.
The Consumer Price Index (CPI), a measure of inflation, rose 8.3% annually in August, a slight improvement from 8.5% in July, the Bureau of Labor Statistics (BLS) said. This marked the second consecutive month of decreases to the annual inflation rate.
The latest CPI data showed that the Social Security cost-of-living adjustment (COLA) could be 8.7% for 2023, according to The Senior Citizens League. This is down from the group’s forecast last month when it said benefits could increase by as much as 9.6% next year. But while this increase is lower than previously forecasted, it will still be the highest increase ever received by most Social Security beneficiaries alive today, the group said.
Last year, Social Security benefits rose by 5.9%. If benefits increase by 8.7% in 2023, it will be the highest increase since 1981, when high inflation pushed COLA to 11.2%, according to the Social Security Administration (SSA).
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