Social Security COLA benefits will increase in 2023

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In September, more than 48 million retired workers received Social Security benefits, and yet there are many individuals who remain misinformed about the program.

For instance, a survey by Nationwide Retirement Institute shows that more than two-thirds of Americans don’t know benefits increase largely based on inflation. The Social Security Administration (SSA) does indeed enact a cost-of-living adjustment (COLA) each year to try and help beneficiaries keep up with rising prices. In fact, after battling runaway inflation over the past year, beneficiaries will see the largest COLA in four decades in 2023. But a few other important changes are coming to Social Security next year.

COLA 2023:Social Security inflation adjustment to boost benefits by 8.7% in 2023, biggest since 1981

OPINION:Retirement dreams become nightmares for many older Americans as inflation soars

Here’s what retired workers need to know.

An 8.7% cost-of-living adjustment (COLA) for Social Security benefits

Scorching inflation hit the U.S. economy hard in the past year, driving up the cost of food, utilities, and medical care, among other necessary goods and services. Fortunately, Social Security benefits will get an 8.7% COLA in 2023 to offset the impact of rising prices. That will be the largest COLA since 1982.

In December, beneficiaries will receive a COLA notice by mail providing the exact details of their new benefit amount. The SSA estimates the average benefit paid to retired workers will rise by $146 to $1,827 per month in 2023. That means the average retiree will see an extra $1,752 over the course of the year.

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