It was announced on October 13, 2022 that the cost of living has increased by 8.7 percent.

What does this mean for Social Security Benefits?

Social security benefits increase and decrease based on the economy. As a result of inflation, the cost of living has increased, and so social security benefits have also increased to keep up with the cost of living.

In 2022, the average monthly retirement check amounted to $1,681. With 2023’s cost of living adjustments, the average monthly retirement check amounts to $1,827. That’s an increase of $146 per month. New benefits will be payable starting in January 2023.

History of COLA

The Cost-of-Living Adjustment (COLA) is an increase in income that helps keep up with the rising cost of living. The COLA adjustment overlooks the cost of consumer goods and services such as: housing, transportation, medical expenses, education, and food and is often applied to wages, salaries, and benefits. The calculations are taken monthly from the previous year’s 3rd quarter to the current year’s 3rd quarter and are then averaged to get the overall total.

Automatic Cost of Living Adjustments received since 1975:

Source: https://www.ssa.gov/cola/

You may view your personal COLA notice online by visiting:

www.socialsecurity.gov/myaccount.

As always, our team is here if you have any questions! 1-800-627-2768