More than 50 million Americans currently receive Social Security retirement benefits, and nearly 90% of retired workers say those monthly checks are an important source of income, according to Gallup. Regrettably, many of those people have faced financial hardships over the past year due to the difficult macroeconomic environment.

Recession fears have caused a dramatic drop in the stock market, erasing more than $3 trillion from retirement accounts. And persistent inflation has sent prices soaring in virtually every corner of the U.S. economy, though the impact has been especially profound in spending categories like gas, groceries, and utilities.

For those reasons, many retirees are anxiously awaiting news about the cost-of-living adjustment (COLA) that will be applied to Social Security benefits in 2023. The official figure will be announced on Oct. 13, 2022, but several experts have already forecast big numbers. For instance, the Committee for a Responsible Federal Budget says benefits could rise between 8.5% and 9% next year. That would be the biggest COLA since 1981.

Continue reading

Source Fool.com