Social Security benefit increase 2023: When will we know next year’s COLA?

Record inflation is expected to push next year’s Cost of Living Adjustment – ​​commonly known as COLA – to the highest levels in four decades.

The exact amount of the increase won’t be known for more than a month, however.

The 2023 Social Security benefit increase is based on third-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W. The announcement of that data is expected around Oct. 13 after the release of the September CPI report. Last year, the Social Security Administration announced the COLA the same day CPI-W was announced so it’s reasonable to expect this year’s amount will be revealed shortly after that time.

A spokesperson for SSA confirmed to the website VerifyThis.com that the 2023 COLA will be announced in October.

Estimates put this year’s potential increase at 10%, a figure that represents the biggest increase since 1981 when the COLA reached 11.2%. Higher inflation between now and the end of the month could push that over the 10% mark while lower figures could bump it down to around 9.3%.

An increase of 10% would raise the average retiree benefit by $175.10 a month.

In 2022, SSI recipients saw a 5.9% increase in benefits.

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