Did you hear about the vast Social Security Benefits Increase 2023 update? Find all the details in this article.
Are you the United States, Philippines, and Mexico citizen using the government’s Social Security benefits? Here is some news to cheer you up for the upcoming year. The Covid-19 pandemic led to a significant slowdown in the economies of almost all the countries, be it the Philippines, Mexico or any other country.
However, the countries have now set themselves on a recovery path to revive these slowed economies, and it naturally faces some challenges. Let us see what Social Security Benefits Increase 2023 economists predict for the US.
The latest news on COLA 2023:
The Cost of Living Adjustments (COLA) is the increase made to the Social Security and SSI to counteract the increasing inflation in the economy.
While the actual figures of COLA 2023 will be revealed after spring, some predictions have been made, seeing the current inflation trend. And these predicted figures haven’t been so high since 1981. Yes, you read it right! The COLA is estimated to increase by 10.5%, which will be the first time since 1981 that these figures were in double digits.
Social Security Benefits Increase 2023:
The nonpartisan Senior Citizens League estimated the COLA 2023 at 10.5% due to the rising inflation. And if this is the case, the Social Security would be up by $175.10 per month for an average retiree.
Record high inflation implies that citizens would receive the most significant Social Security benefits in four decades. Thus, disabled veterans, federal retirees and other Social Security recipients might see an increase of $175 approximately in their cheques from next year.
However, please remember these are just expectations in the Social Security Benefits Increase 2023 if the current trends continue. The trend might change if we see deflation or no inflation in the economy.
The increase in Social Security benefits will boost the lowest income earners, receiving approximately $900 monthly through the Special Minimum Benefit program.
Understanding COLA:
Cost of Living Adjustments is the percentage increase in Social Security to counteract the effects of the rising prices in the economy.
COLA figures depend on the CPI-W from the previous year’s third quarter to the current year’s third quarter. Therefore, the actual Social Security Benefits Increase 2023 will be revealed later this year.
COLA equals CPI-W, the Consumer Price Index for Urban Wage Earners and Clerical Workers. If there is no CPI-W increase, recipients of Social Security do not receive a COLA. For the year 2022, COLA in the U.S is 5.9%.
Final Words:
You can learn more about Social Security in the US through this link. Many predictions are coming for the following year’s Cost of Living Adjustments. However, please remember that these are mere predictions and can change depending on future circumstances. However, until then, if the figure comes out to be correct, Social Security Benefits Increase 2023 would be massive news for the beneficiaries.
Have you understood the topic? For, any further queries, please comment below!
Also Read : – Social Security Cola Benefits 2023 {July 2022} Know Here