In spite of the fact that the increase in US Social Security benefits in 2022 was already seen as historic when the figures were announced late last year.
Social security benefit in 2023 could again be historically high due to the current level of inflation.
According to a report shared by Money.com, the cost of living adjustment for Social Security (COLA) could increase by up to 10.8% if inflation continues at current levels.
It would be the highest price increase in 42 years with a COLA of 10.8%, the report states.
In 2022, the COLA will be 5.9%, which is also historically high.
According to the latest figures from the Social Security Administration, the average monthly Social Security benefit is $1,540.
A 10.8% COLA would increase that benefit to $1,694 - an increase of $154 per month."
According to the CRFB, a rise in benefits is predicted if the current level of inflation persists when the SSA calculates benefits for 2023 recipients.
"If inflation stops for the remainder of the year, the COLA could be as low as 7.3%," the report states.
It is very unlikely that inflation will halt completely by the end of 2022, despite some economists expecting the inflation rate to dip later this year as a result of the Federal Reserve's aggressive efforts to control it."
An SSA official predicted 8% and the non-profit Senior Citizens League predicted 8.6% for the 2023 COLA, according to the Money.com report.
According to RMD's previous outreach, most reverse mortgage originators believe the COLA is a welcome addition to their clients' wallets ...
...but may not have much impact on their continuing need for the product.
A significant segment of seniors may rely on Social Security as their sole source of income, so there are some concerns that borrowers could face in addition to the COLA.