After months of anticipation, retirees now know that their Social Security benefits will officially go up by 8.7% in 2023, due to the most significant cost-of-living adjustment (COLA) in more than 40 years.

In September, the average monthly Social Security check for retirees was $1,628.17, meaning that next year retirees may see their monthly benefits increase by more than $141, which equates to an annual bump of more than $1,692.

The increase is badly needed considering how high inflation has been this year, which has raised the cost of goods and services everywhere from the pump to the grocery store. While the big increase is welcome news, it could also be the largest annual increase to Social Security benefits for quite a while. Here's why.

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Source Fool.com