Higher inflation might give Social Security retirees the largest COLA in nearly 4 decades.

More details will be revealed in the fall such as how much Social Security recipients, disabled warriors, and federal seniors would receive in 2023.

However, the Senior Citizens League predicted that the 2023 COLA might be 10.5%.

If this is true, it will be the largest rise in Social Security payouts since 1981 and far higher than this year 5.9% COLA.

As per the data, 10.5 percent COLA for 2023 would increase the typical retiree's monthly payment by $175.

The projection of the advocacy group is based on the June reading of the CPI for Urban Wage Earners and Clerical Workers...

...which indicated a 9.8 percent increase in prices over the previous twelve months.

Using the index, the SSA will determines how much to boost Social Security payouts for the next year.

As per the Committee for a Responsible Federal Budget, the COLA for 2023 will be as much as 11.4% if the trend remains the same.

If inflation maintains at its June level, the cost of living adjustment would be at least 9 percent.

The main purpose of the COLA is to maintain the buying power of Social Security benefits and to counteract the effects of inflation.

Many elderly are suffering financially as costs continue to rise, says Mary Johnson, League policy analyst.

A larger Social Security COLA in 2023 means higher Social Security taxes ahead.

In 2022, the highest limit of taxable income, known as the wage base limit, is $147,000. Next year, it may increase to $155,100.

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