In order to adjust for inflation, the total value of monthly Social Security check payments could be more than $1,800 in 2023.
Cost-of-living adjustments were signed into law in 1975, accounting for rising living costs due to inflation, as calculated by the consumer price index, according to the Social Security website. This year has already seen a record rise, with monthly checks seeing a 5.9% rise in January of $93, totaling $1,657, according to CNET. The next COLA will be announced next month, but it very well could send checks over $1,800.
SOCIAL SECURITY PAYMENT 2022: SECOND HALF OF MONTHLY $1,682 CHECKS TO BE SENT IN JUST WEEKS
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"This will be one of the highest COLAs ever paid in the history of the program," Mary Johnson, an analyst with the Senior Citizens League, told the Detroit Free Press.
The CPI data for July put the latest increase at 8.5%, already outpacing this year's COLA and well above the Federal Reserve's target of 2%. July marks the 17th consecutive month that the CPI has exceeded the Fed's 2% target.
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As COLAs are measured by the CPI, it is all but guaranteed that the next COLA will result in monthly checks that exceed $1,800. The Senior Citizens League estimated that the next COLA will see an increase of 8% to 10.1%, depending on future inflation, according to the Detroit Free Press. If inflation continues at roughly the same rate, there will be an increase of about 9.6%.
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Tags: Money, Social Security, Finance, Personal Finance, News
Original Author: Brady Knox
Original Location: Social Security increase: Value of monthly check payments could be over $1,800 in 2023