Seniors are paying more as a result of the recent spike in prices. Their Social Security benefits are rising as an outcome. The Social Security Administration estimates that in 2023, the cost of living adjustment (COLA) will be 8.7%. Therefore, the rise represents the largest benefit boost since 1981. Yet that is expected to change the following year.
Those who received Social Security benefits this past year will probably need to lower their future hopes. And this is because the COLA probably won’t be as high the following year. It is probable that the cost of living adjustment, which is 8.7% in 2023, would fall in 2024. The Senior Citizens League told CBS Money Watch in a mail that the cost-of-living increase for the following year might be less than 3%.
The estimated annual rate of inflation for March was 5%. So that probably means that administration experts anticipate a sharp decline in inflation during the remaining months of 2023. Seniors and other beneficiaries of benefits may be taken off guard once more if inflation doesn’t decline and the rise remains at 3% or less.
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