Social Security checks could be getting bigger soon

(The Hill) – People on Social Security could see a big spike in their checks from a cost-of-living adjustment (COLA) that itself is a result of inflation.

In a letter sent Tuesday, Senior Citizens League policy analyst Mary Johnson said recipients could see an 8.7 percent COLA spike next year.

That large increase reflects the high inflation that people across the country are experiencing, although at the same time it’s actually a smaller COLA than SCL projected a month ago. At the time, Johnson predicted a 9.6 percent increase.

“After evaluating the August consumer price data, what I found clearly shows a weakness in our inflation adjustment system for Social Security. My COLA estimate has dropped to 8.7% almost a full percentage point from the 9.6% I forecast last month,” Johnson wrote in his letter.

“It’s a significant drop, but the Consumer Price Index, CPI-W (CPI-W), the index based on Social Security benefits, has fallen – by 1.10 percentage points year over year to 8.7%,” he wrote. stated.

The 8.7 percent COLA will increase the average retiree’s benefit from the $1,656 they receive monthly to $1,800 by next year, an increase of $144.10.

This is also the highest COLA increase since 1982 when the Social Security Administration (SSA) expected a 7.4 percent increase in cost of living adjustments.

That may not translate into more money for people living off their Social Security checks, even with rising costs of goods and health care costs.

“Across the board, retired and disabled Social Security recipients spend a large portion of their incomes on healthcare costs, housing, and food and less on gasoline,” Johnson said. “Over the past 12 months, they ranked the cost of food as the fastest growing expenditure, housing, and transportation in that order.”

Ministry of Labor on Tuesday proclaim that consumer prices rose in August by 0.1 percent despite a drop in gas prices, news that triggered a steep stock selloff by aggravating the problem that inflation is not easing.

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