Many retired workers have found themselves in a difficult financial position. The stock market has sold off sharply in response to recession fears, erasing nearly $3 trillion from individual retirement accounts (IRAs) through the first three quarters of 2022. Meanwhile, inflation reached its highest level in four decades last year, driving double-digit increases in the prices of gasoline, groceries, and monthly utilities.

Unfortunately, the 5.9% cost-of-living adjustment (COLA) applied to Social Security benefits in 2022 failed to keep pace with rising prices, meaning benefits lost buying power. But retired workers have good reason to believe the situation will improve this year. Social Security benefits will get an 8.7% raise in 2023 -- the largest COLA since 1982 -- and that raise comes with an important bonus.

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Source Fool.com