The COLA increase in United States benefits makes it possible for retirees to have sufficient purchasing power. Without this increase, everyone collecting a Social Security benefit may have trouble affording all monthly expenses. With inflation and the increase in prices, every year it becomes more and more difficult to afford all the payments. That’s why the COLA exists.
Thanks to the COLA, all Social Security benefit payments go up a little bit each year. It doesn’t matter if the benefit is for old age retirement, disability or other reason. The important thing is that all Social Security beneficiaries can get an increase in their benefits so they can live in peace and quiet. Many people do not know about this increase, but it is real and it exists.
What do I have to do to receive the COLA?
COLA is the increase in Social Security benefits to meet market rates. It stands for cost of living adjustment. Through COLA, the United States Congress and the United States Government intend for people on SSA benefits to be able to afford any increases in prices, as well as taxes and other payments to be made.
You do not have to do anything to receive the COLA increase, as it is an automatic process based on the amount you receive for your benefit. It is not a fixed amount of money, but a different percentage each year. Therefore, you do not have to worry about submitting documents, as the COLA will be done automatically and you will start to notice it in the January 2023 benefit.
What is the increase in the cost of living adjustment in benefits?
The COLA increase for 2023 is not yet final. This increase is calculated based on tax and inflation data for the months of July, August and September. After making the calculations, the Government and the Social Security Administration reveal what the increase will be in October. This increase starts to work from January of the following year.
For this year 2022 the increase in the cost of living adjustment was almost 6%. Some experts, such as The Seniors Citizen League, assure that the increase for next year will be close to 9%. This estimate is based on inflation data for the first months of the year. However, we still have to wait to know the exact number of the COLA increase.