Americans could get $143 extra in Social Security checks for 2023 as new COLA estimate is revealed

SOCIAL Security claimants are set to get larger benefits next year as inflation remains high.

Each year, Social Security benefits are calculated based on a cost-of-living adjustment (COLA).

Where the COLA ends up depends on where the consumer price index (CPI) winds up towards the end of the year.

For April, the index surged by 8.3% mainly due to the Russia-Ukraine war and the supply still failing to meet the demand across the board.

However, the inflation rate came in lower than March's 8.5%.

As a result, The Senior Citizens League (TSCL) is slightly tweaking its 2023 COLA estimate.

It is now projecting that the COLA will rise to about 8.6%.

In 2022, the average Social Security benefit is $1,657, while the maximum is $4,194 a month.

The 8.6% increase would mean that the average benefit would climb by about $143 per month to $1,800, whereas the maximum would jump by roughly $361 to $4,555.

While the estimate isn't significant compared with last month, things could change soon, as the Social Security Administration (SSA) normally announces next year’s COLA in the fall.

In efforts to curb inflation, the Federal Reserve has taken aggressive action by hiking interest rates twice this quarter.

Going forward, more rate hikes are expected.

Plus, where inflation winds up could depend on if the Russia-Ukraine war continues to escalate.

Also, keep in mind that boosted checks aren't always a good thing.

In fact, TSCL said that high inflation has decreased Social Security claimant's buying power by 40% since the year 2000.

Also, the TSCL added that "COLAs have increased Social Security benefits by a total of 64%, yet typical senior expenses through March 2022 grew by more than double that rate — 130%".

Ms Johnson told The Sun that the SCL supports federal legislation that would provide a minimum COLA and attached an index that better tracks the costs of Social Security recipients.

For example, Medicare Part B premiums, prescription costs, and other healthcare expenses aren't "fairly" measured by the CPI, said Ms Johnson.

"Surveys by The Senior Citizens League have found strong support (around 63% of survey respondents)  for providing 3% minimum COLA," she added.

In fact, millions of retirees are getting less from Social Security checks despite the COLA boost.

Also, if you have been getting the wrong Social Security benefits, here's how to change that.