The United States economy is seeing a very large inflation in this year 2022. All American citizens are suffering from this inflation, and that is because many of them collect their Social Security benefit and it may not be enough to live on every month. People who do not depend on Social Security do have the opportunity to change things a bit with respect to their situation, but retired or disabled people do not have this option.
As inflation continues to increase every year, the COLA continues to increase as well. And this does not mean that Social Security retirement benefits also increase. At least not proportionately. Yes, those benefits may go up, but not enough to live in absolute peace of mind.
In theory, the increase in the rate of Social Security benefits is greater the higher the inflation rate, but this is not always 100% true. That’s why many people worry about their situation in the United States.
The COLA keeps rising
Every year the COLA increases significantly. Last year this increase was estimated to be around 5.9%, which in the end turned out to be 6.2%. This was just a little higher than estimated. Social Security could not raise retirement benefits that much, so many people are a little short of money.
Inflation has now reached 8.3%, which means that Social Security cannot fully cope with what is happening. With a fixed income such as a retirement or disability benefit, it’s hard to survive because it doesn’t rise with inflation gradually like the other regular income of United States citizens.
Record numbers for Social Security pensioners
The SCL (The Senior Citizen League) assures that Social Security retirees have not previously seen an inflation figure like the one predicted for next year 2023. This figure will reach 8.6% increase. It means, therefore, that it would surpass the highest increase figure, which was given in 1981, of 7.4%.
As far as the increase is concerned, it means that in the end the average increase in Social Security would be $139.29 This increase would start to take place in 2023 and would mean that on average people would receive $1,758. Anyway, all these increases are relative and are not for everyone, as it depends on many factors.
Remember that these increases are automatic and we do not have to do anything to apply for them. If you want more information, you can always go to a local office where they will be able to tell you what the exact Social Security increase is for you, as well as any other information you need regarding your retirement or disability benefit.