The Federal Reserve tries to keep inflation at 2%, but a combination of factors -- from stimulus checks and loose monetary policy to supply chain disruptions and geopolitical conflict -- have caused prices to rise much more quickly lately. In fact, inflation hit a 40-year high of 9.1% in June, and it has exceeded the Fed's target for the last 17 months.

Fortunately, the Social Security Administration (SSA) enacts a cost-of-living adjustment (COLA) each year to protect the buying power of benefits. In light of the trajectory inflation has followed this year, the COLA could be as high as 8.7% next year, according to The Senior Citizens League. That would be the largest COLA since 1981.

That said, many seniors may still feel like they have less money in 2023. Here's what you should know.

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Source Fool.com