MILLIONS of Americans can receive up to $4,555 in COLA (Cost-of-Living Adjustment) benefits over the next year.
The Senior Citizens League slightly adjusted its COLA forecast for 2023 to an 8.6 percent increase.
The increase would mean that the average output will increase by about $143 per month to $1,800. The maximum benefit would increase by approximately $361 to $4,555.
The expected increase comes as the consumer price index has risen sharply in recent months as the supply chain has lagged behind demand.
Social security benefits are calculated based on the annual cost of living adjustment, which depends on the consumer price index.
This year, the average monthly Social Security benefit is $1,657, while the maximum is $4,194 per month, thanks to the 5.9 percent increase in 2022.
The Social Security Administration is expected to announce next year’s COLA in the fall.
Read our COLA 2022 live blog for the latest news and updates…
CPI: What is CPI-W?
This type of CPI is used by the Social Security Administration to determine inflation and apply cost-of-living adjustments to Social Security and Supplemental Security Income.
The Bureau of Labor Statistics uses the same processes to calculate the CPI-W as the CPI, but with elements that impact specific demographics.
What is CPI?
Businesses can use the consumer price index, or CPI, to decide how much to adjust compensation for inflation.
One of the most commonly used measures of inflation is the consumer price index.
https://www.the-sun.com/money/5375624/cola-2022-social-security-payment-2023-boost/ COLA will increase Social Security payment in 2022 – millions of Americans will receive $4,555 in cash