Shortly after the BLS released dismal CPI data showing inflation once again soaring to 40 year-highs, the Social Security Administration announced it will boost the cost-of-living adjustment (COLA) for pensioners by the most in four decades.
Social Security on Thursday said around 70 million qualifying Americans will see their benefits increase 8.7% next year, as retirees find it increasingly difficult to keep up with the surging cost of living. The new COLA adjustment is based on the latest CPI figures from the BLS, which showed annual inflation hit 8.2% in September. The boost will amount to an additional $140 per month starting January 2023.
At the same time, those enrolled in Medicare will see that premiums deducted from their Social Security benefits will not increase next year, providing another financial boost for those struggling to make ends meet in the current inflationary environment. In the meantime, the maximum annual income subject to the Social Security tax will increase from $147,000 to $160,000.
A total of 52.5 million Americans over 65 years old received the Social Security benefit in August, while survivors of insured workers, those qualifying for disability benefits, as well as those falling into the lowest income threshold as per the Supplemental Security Income contributed another 17.9 million to the total.
Information for this briefing was found via Social Security. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
