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

Credit : Google Image

Credit : Google Image

Credit : Google Image

Social Security benefits are set to rise by 8.7% next year – the fourth-biggest increase since automatic inflation adjustments were introduced in 1975.

Credit : Google Image

Credit : Google Image

This cost-of-living adjustment, or COLA, will boost the average monthly checks retirees receive in January by $146 to $1,827, the Social Security Administration said Thursday.

Credit : Google Image

Credit : Google Image

That builds on last year’s 5.9% COLA increase, which was the largest bump since 1982. Before then, COLA increased by an average of 1.7% annually from 2010 to 2020.

Credit : Google Image

Credit : Google Image

The government bases its COLA adjustment on average annual increases in the consumer price index for urban wage earners and clerical workers from July through September.

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Credit : Google Image

That index largely reflects the broad index that the Labor Department releases each month.

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Credit : Google Image

The index rose to 8.5% in September, the Labor Department announced Thursday.

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