Trying to Guess at Next Year's Social Security Raise? Do This Instead.
The next Social Security cost-of-living adjustment, or COLA, that comes down the pike could be a big one. This year, seniors on Social Security saw their benefits increase 5.9% as a result of inflation. But over the past number of months, inflation has been even more rampant, and it's unlikely to slow drastically in the near term.
That's significant, because third-quarter inflation data is used to calculate Social Security COLAs. Once that data becomes available, the Social Security Administration runs the numbers and typically puts out details of the following year's COLA during the first half of October.
Meanwhile, based on recent inflation trends, there are different COLA estimates being tossed around. Some say seniors are looking at an 8.6% boost to their Social Security income in 2023. Other estimates are calling for an almost 11% increase.
Source Fool.com
