Inflation in the United States is making life difficult for many retirees. For everyone collecting Social Security alone, the increase in prices can be too much. For that reason, the COLA makes everything easier. This annual increase in Social Security benefitsis through a percentage. We don’t know the exact figure yet, but it is quite possible that the average increase will be $200 per month. So, if you have an average benefit, you will see that your benefit will increase by that amount.
The problem is that many people think that the Social Security Administration has denied them the $200 increase on average. This is not the case, since the increase through the benefit COLA is automatic. It cannot be denied, since the idea is that pensioners do not lose purchasing power. So don’t worry if you haven’t seen the increase yet. It just hasn’t taken effect yet.
When will the Social Security increase be?
At the beginning of each year you will get the benefit increase. The percentage that Social Security increases through the COLA is announced in October. This final increase is calculated using the CPI-W for the third quarter of the year. That is, according to the inflation of July, August and September the subsidy will increase a little for the year 2023.
Every year the same calculation is made and this year it seems that it will break a record. According to experts at The Senior Citizens League, the COLA increase could be as much as 10% by 2023, so the average increase will be around $200 per month. This means that per year retirees could have $2,400 more. This would be very good if it were not for the fact that inflation does not rest either and does not stop increasing at any time.