Social Security Benefits Got a Big COLA in 2023

Social Security benefits struggled to keep up with inflation in 2022, posing financial challenges for retired workers.

[{"selector":"#anim-bd456d4a-df0f-40e5-80aa-75d66e876e30 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] CREDIT GETIMAGE

[{"selector":"#anim-b08ae88a-290a-4921-ade3-069cd9558550 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Despite a 5.9% COLA in 2023, Social Security benefits fell short of the 8.5% increase in the CPI-W. Despite a 5.9% COLA in 2023, Social Security benefits fell short of the 8.5% increase in the CPI-W. CREDIT GETIMAGE

[{"selector":"#anim-f8f4497c-8a4e-4c20-8cd3-8857499ea1d3","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] Retirees experienced a decline in purchasing power of $1,054 in 2021 and 2022 due to rising costs of goods. Retirees experienced a decline in purchasing power of $1,054 in 2021 and 2022 due to rising costs of goods. CREDIT GETIMAGE

[{"selector":"#anim-e5f0b527-0014-4341-9e73-a2d056c2d0c9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] In 2023, Social Security benefits saw an 8.7% increase, the largest COLA since 1982, providing relief for retirees. In 2023, Social Security benefits saw an 8.7% increase, the largest COLA since 1982, providing relief for retirees. CREDIT GETIMAGE

[{"selector":"#anim-57d331d2-dc27-41b8-8ea0-ad01f92f38af [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Cooling inflation suggests a smaller COLA of around 2.7% is expected in 2024. Cooling inflation suggests a smaller COLA of around 2.7% is expected in 2024. CREDIT GETIMAGE

[{"selector":"#anim-10ecc8ff-1b79-474b-8873-5343e3c649c5","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] The official 2024 COLA for retired workers will be determined by the third-quarter CPI-W data, available in October. The official 2024 COLA for retired workers will be determined by the third-quarter CPI-W data, available in October. CREDIT GETIMAGE

[{"selector":"#anim-e969ae5f-8f6e-4dd8-96f5-875f4bd5abc1 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] May's CPI-W reading suggests a 2.2% increase, indicating a potentially higher COLA for 2024. May's CPI-W reading suggests a 2.2% increase, indicating a potentially higher COLA for 2024. CREDIT GETIMAGE

[{"selector":"#anim-c808f5bc-507e-4094-ba92-8bc8747ce5ab [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.514648210040342%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Despite the 8.7% increase in Social Security payments in 2023, the CPI-W rose by only 3.6% in May, making a full recovery of purchasing power unlikely this year. Despite the 8.7% increase in Social Security payments in 2023, the CPI-W rose by only 3.6% in May, making a full recovery of purchasing power unlikely this year. CREDIT GETIMAGE

[{"selector":"#anim-d4957a3f-9425-494c-afd4-4c527a6560ea","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] The Social Security COLA system aims to counteract inflation, but it may take time for the effects to balance out. The Social Security COLA system aims to counteract inflation, but it may take time for the effects to balance out. CREDIT GETIMAGE

Social Security Benefits Got a Big COLA in 2023

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Social Security Benefits Got a Big COLA in 2023

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Social Security benefits struggled to keep up with inflation in 2022, posing financial challenges for retired workers.

Social Security benefits struggled to keep up with inflation in 2022, posing financial challenges for retired workers.

Social Security Benefits Got a Big COLA in 2023

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