There's a reason seniors on Social Security tend to struggle financially. Those benefits, contrary to what some may have been led to believe, won't replace workers' pre-retirement earnings in full. For average earners, they'll replace about 40% of pre-retirement income, and that's generally not enough to live on (at least not in a comfortable manner).

It's for this reason that many seniors may be eagerly awaiting news of a giant cost-of-living adjustment, or COLA, for 2023. In 2022, benefits rose 5.9% as a result of higher inflation levels during the latter part of 2021. Since inflation has been even more rampant this year, it's fair to assume that next-year's Social Security raise will be big.

Still, there's a good chance seniors will end up disappointed with the COLA they receive in 2023. So it's best not to bank on a giant raise for the following reasons.

Continue reading

Source Fool.com