Even though prices have increased significantly, inflation may have slowed in 2023. As a result, Social Security beneficiaries will notice a big increase in their payments beginning in January. According to the Senior Citizens League, the cost-of-living-adjustment (COLA) for Social Security is expected to be 3.2% based on the most recent inflation data from August.
The cost of living adjustment for Social Security benefits is decided upon annually by the Social Security Administration. The Consumer Price Index for Urban Wage Earners and Clerical Workers’ % rise from the 3rd quarter of last year to the 3rd quarter of the present year is the basis for the COLA.
The Social Security Administration is going to raise payouts by the COLA whenever there occurs a yearly CPI increase, which there has been throughout 2022. When the final inflation data for the 3rd quarter of 2023 are revealed on October 12, we’ll know for sure how much the Social Security COLA for 2024 will be.