Social Security recipients will begin receiving an increase in monthly benefits of $140 starting in January due to an 8.7% cost-of-living adjustment for 2023.
Currently, a Bank of America Institute study shows that elder people who get Social Security benefits are consuming more quickly.
Based on data from the Bank of America Institute, family spending jumped between 4% and 6% for people who were born in 1964 or earlier for the week ending February 18 compared to 2% for all other age groups.
The institute is a research institute inside the bank that examines consumer trends using the company’s exclusive internal data. Based on the company, Bank of America provides services to around 67 million customers or roughly one in every two families.
Data from Bank of America’s debit and credit cards revealed that throughout 2022, older people spent money at a similar rate to younger generations. Even so, the study found that expenses growth among older groups has overtaken the average since late November.
The Social Security cost-of-living adjustment, or COLA, might well have caused older people to increase their consumer spending by nearly 3 percent points, as reported by the Bank of America Institute.
