Seniors Are Scheduled To Receive An 8.6 Percent Increase in Their Social Security Benefits for 2023

That is a $361.00 Benefit Boost Because of inflation, Social Security Benefits can increase by about 8.6 percent in 2023. This is good news for those on a fixed income, like many Medicare Beneficiaries. The last time COLA was this high was in 2011, when it rose by about the same amount.

What does this mean for you? If you’re currently receiving Social Security benefits, your payments could go up by as much 8.6 percent In 2023 this will help keep up with the rising cost of living, and is a much-needed raise for many people on fixed incomes. If you’re not currently receiving benefits, this COLA increase could mean that you become eligible for benefits next year.

There’s a reason why retirees who rely solely on Social Security income often struggle financially. Inflation rates are typically understated.

This year, Social Security beneficiaries received their biggest cost-of-living increase (COLA) in decades, a 5.9 percent boost that took effect on January 1 2022. That’s why inflation has shot up so much.

Meanwhile, prices have been on a tear in recent months. As a result, the non-partisan Senior Citizens League recently issued an estimate that seniors could get an 8.6 percent COLA by 2023.

Of course, COLA data is based on third-quarter inflation data, so the aforementioned number is really just speculative at this point. But either way, it is fair to assume that Social Security will get a pretty sizable raise in 2023 — one that potentially makes this year’s 5.9% seem like chump change.

The whole point of Social Security COLAs is to help beneficiaries maintain their buying power as living costs rise. But even if Social Security gets a huge boost for 2023, seniors are unlikely to actually come out ahead.

In a best-case scenario, we can hope that Social Security doles out a generous enough raise to help seniors keep up with inflation. But what’s more likely to happen is that even a generous raise will fall short.

The COLA increase that we received this year was not enough. Inflation has been going up faster than the COLA, so people receiving Social Security benefits have been struggling to cover their bills. We are likely to have the same problem next year.

The best way to combat this problem is to supplement your Social Security benefits with other sources of income, such as a pension, annuity, or part-time job. That way, you can be sure that you will have enough money to cover your costs, no matter how high inflation gets.

Unfortunately, it may be too late for current Social Security beneficiaries to address the problem of rampant inflation. Many seniors aren’t in a position to work due to health issues or concerns. And for some, a lack of current skills could be a barrier to securing part-time employment.

Today’s seniors can’t go back in time and save money for retirement. But today’s workers can save money to help them through retirement. If you are not retired yet, and you want to avoid the financial problems many seniors are facing today, you should save money for yourself. If you save $300 every month for 40 years, you will have almost $1 million dollars. This is assuming that your investments earn an average of 8% each year. This is a reasonable assumption.

It is too soon to say how much the Social Security COLA will be next year. But we do know that it will be a significant increase. However, seniors should not expect it to be easier to cover their bills. In fact, it may be harder because of current market conditions. The best way to protect yourself is to have other sources of income in retirement. This can be from a pension, annuity, or part-time job. If you don’t have these things, start saving now so that you can retire comfortably later.

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