Those planning to retire in 2023 may see a 9.5% increase in direct benefit payments if inflation continues to rise.
The cost-of-living adjustment for 2022 sits at 5.9%, boosting average payments by approximately $93, according to the Social Security Administration. COLAs are determined based on the consumer price index for urban wage earners and clerical workers and only look at the third quarter of the year, adding together numbers from July, August, and September.
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If inflation in August and September stays the same as it did in July, the 2023 COLA will be around 8.9%, a MarketWatch analysis showed. However, if inflation increases by 0.6% in August and then another 0.6% in September, then the COLA will be around 9.5%.
Monthly Social Security payments sit at $841 for single recipients, $1,261 for couples, and $421 for essential persons who live with or take care of Social Security recipients. Recipients can expect two payments this month as opposed to one, given that Oct. 1 falls on a Saturday, the Washington Examiner reported.
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The inflation report for August is set to come out on Sept. 13, the Bureau of Labor Statistics reported.
