Social Security increase could be record 8.9% next year
Social Security recipients could see the biggest cost-of-living raise in four decades next year as inflation continues to rise.
The Senior Citizens League estimated next year’s Cost of Living Adjustment could be as high as 8.9%. The figure is based on March inflation data showing consumer prices rose 8.5% from the previous year, the fastest year-over-year jump since December 1981, Fox News reported.
The annual Social Security change is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers.
If the 8.9% figure holds, it would be the biggest COLA since 1981 when recipients saw an 11.2% jump. Last year, recipients received an average increase of 5.9%. The adjustment meant an increase of about $92 per month for most retired workers, bringing the average benefit to $1,656 per month.
The Social Security Administration will release the final numbers in October with any increase starting in 2023.