Social Security Recipients May Not Benefit as Much as Expected From Their 8.7% Raise -- and This Outdated Rule Is to Blame
This past October, seniors on Social Security learned that they'd be getting an 8.7% cost-of-living adjustment (COLA). And many breathed a sigh of relief.
Lots of seniors struggled with inflation in 2022, and last year's 5.9% COLA didn't do a good enough job of keeping pace with it. This year, things are shaping up to be different, though, because the rate of inflation has already dipped to well below 8.7%. If it continues to trend downward, seniors on Social Security might actually gain some buying power for the first time in years.
That said, 2023's generous COLA may not go as far as seniors expect. In fact, Social Security beneficiaries could end up losing money this year -- and it's all because of one long-standing rule that's in serious need of an update.
Source Fool.com
