Social Security Beneficiaries Receive a COLA for 2023

Retirement

Social Security Beneficiaries Receive a COLA for 2023

Posted by Infinite Wealth Advisors, LLC
4 weeks ago | November 14, 2022

We often caution our clients not to count on Social Security to provide all of their retirement income. But still, we acknowledge that the program does serve as a valuable supplement to other income that you’ve established for yourself. And because the cost of living does rise over time, the fact that Social Security issues regular cost of living adjustments (COLAs) can help retirees manage their budgets in light of rising inflation.

So on that note, we have some good news for retirees or those soon to retire: The Social Security Administration has just announced a COLA of 8.7 percent, beginning in January 2023. That means your monthly check will rise by that same percentage.

For the average benefits check of $1,681, that will mean a new payment of $1,827. Your exact payment depends upon your earnings history, and is calculated when you first claim your benefits.

The 8.7 percent increase to checks is the largest COLA we’ve seen since 1981, when the Administration announced a COLA of 11.2 percent.

Of course, a large COLA reflects a high inflation rate, which we have definitely witnessed over this past year. The cost of everything is rising, and inflation can impact retirees more severely than some other groups due to their fixed incomes. If you’re concerned about the effects of inflation on your retirement income, either now or in the future, we should schedule an appointment to discuss your situation in more detail.

For now, we can all appreciate the good news of a significant COLA for 2023. Look for that change on your benefits check on the first of January.

 

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