According to a Social Security Administration official, seniors and others who depend on the benefits program are likely to receive a cost-of-living adjustment...
..."closer to 8%" at the end of 2022 due to current inflation.
It would represent the largest cost-of-living adjustment since 1981. There is an average Social Security check of $1,658 per month.
Beneficiaries may see a monthly increase of $132.64 in early 2023, bringing their average check to $1,790.
It will take effect in December, and the updated benefits will be paid out in January 2023.
Social Security beneficiaries will get 5.9% COLA increases in January - the biggest increase since 1982.
The inflation rate has far exceeded that number this year, hitting 8.3% in April, reducing the purchasing power of many seniors.
According to Stephen Goss, the chief actuary of the Social Security Administration, we are likely to have a COLA closer to 8% than 3.8% this year based on the CPI-W trends we are seeing.
Why THEREIS A BIG COLA
Social Security uses the CPI-W to determine its annual living adjustment.
According to Goss, the Social Security program will boost benefits by 3.8% by the end of 2022 as predicted in the Social Security Trustees Report released last week.
October announcement
According to some economists, inflation will decrease later this year due to the Federal Reserve's continued interest rate increases.
It remains red-hot for now. A FactSet survey of economists suggests that inflation rose 8.2% in May.
Inflation data will be released by the Labor Department on Friday.