The adjustment is bigger than last year at 5.9%, which was the highest in a decade.
Social Security: cost-of-living (COLA) will increase to 8.7% (photo: More than your Money, Inc.)
The Social Security Administration (SSA) announced on October 13, 2022, to increase the cost-of-living (COLA) adjustment to 8.7%. The increase is based on the Consumer Price Index data released by the Department of Labor’s Bureau of Labor Statistics. The CPI in October last year showed a rise of 8.2% year-over-year.
The COLA is said to begin its distribution in January 2023 of benefits payable to more than 65 million Social Security beneficiaries. More than 7 million Supplemental Security Income beneficiaries have already received increased payments since December 30, 2022.
Moreover, Social Security Administration Acting Commissioner Kilolo Kijalkazi said, “Medicare premiums are going down, and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room. This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned.”
Meanwhile, some interest groups have questioned if the increased benefits will be enough to keep up with inflation. The American Association of Retired Persons (AARP), an advocacy group focusing on issues affecting people over 50, proposed to ic=ncrease Social Security retirement up to $1,827 from $1,681.
In a statement, AARP Chief Executive Jo Ann Jenkins urged Congress to “protect and strengthen Social Security for the long term” and that “millions of Americans work hard throughout their lives to earn their benefits, and Social Security is a promise that must not be broken.” Jenkins also added that there should be a guarantee that the benefits are guaranteed as high inflation remains a problem for older Americans.