2023's Social Security Raise Is Already Benefiting Seniors -- Here's Why
For much of 2022, seniors on Social Security found themselves wondering what their 2023 cost-of-living adjustment (COLA) would amount to. And in October, they got their answer.
Based on third quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), it was determined that Social Security benefit would be rising 8.7% in 2023. The purpose of COLAs is to help Social Security recipients maintain buying power as the cost of living rises, so those COLAs are tied directly to inflation.
Last year, Social Security benefits rose 5.9% at the start of the year. But the rate of inflation far surpassed that raise, leaving seniors in a tough financial spot.
Source Fool.com