According to some financial experts, record increases could be on the way for Social Security recipients. The possible increases come as record inflation drives global prices for just about everything to record heights. This could lead to another cost of living increase for those that depend on Social Security. You may remember SSI recipients received a 5.9 percent boost for 2022, the first in more than four decades.
As you might imagine, record inflation is pushing affordable housing beyond reach for many. Right now, inflation is at 8.5 percent, the highest rate since 1982. Forbes says the soaring inflation rate is well beyond the sub-two percent rate consumers have enjoyed for decades. The Senior Citizen League estimates with inflation rates remaining high Social Security recipients could see another cost of living increase in 2023. The SCL estimates the COLA for 2023 could be as high as 8.9 percent, the biggest increase in 41 years. The Social Security Administration will release the 2023 in the third quarter Q3 of the year.
Record Inflation = Record COLA for 2023?
A 2022 Gallup poll also highlights more record numbers. According to the poll, 89 percent of American retirees lean on current Social Security payments as a source of retirement income. Moreover, 85 percent of non-retirees plan to use Social Security as income when they retire. The poll shows both of these numbers are near all-time highs. So, what can the average retiree expect when the COLA increase comes later this year?
Economists predict the average retiree could see a $124 dollar increase by this December. A monthly increase of that size equates to a near $1,500 increase for a full year. COLA raises, of course, depend on factors based on the individual recipient. The increase could provide some temporary relief in the inflated market, however experts say the purchasing power of Social Security income is expected to keep declining over time.