Social Security benefits could net retirees an extra $1,800 next year

A larger inflated Social Security check and, yes, hope for some relief from the high cost of prescription drugs are on the horizon. And for many retirees, the relief can’t come soon enough.

Inflation is brutal on low-income consumers, including millions of retirees, who don’t have much savings as the cost of gas, groceries and rent soars.

Thanks to rising inflation, those drawing Social Security benefits can look forward to an approximately 8% to 9% higher payout in 2023, based on early estimates.

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Retirees could get an additional $1,800 a year

On average, a retiree might see an extra $150 a month — if there’s a 9% cost-of-living adjustment to Social Security for the next year — based on an example of current benefits of $1,656 a month. A cost of living adjustment in this example would be an additional $1,800 per year.

We will have to wait until October for the official inflation adjustment.

“This will be one of the highest COLAs ever paid in the history of the program,” predicted Mary Johnson, social security policy analyst at The Senior Citizens League, a nonprofit group.

Based on CPI data for the year to July, the COLA adjustment could be around 9.6% if inflation continues at a similar pace.

If inflation picks up, the Senior Citizens League estimates that adjustment could rise to about 10.1%.

If inflation cools, the adjustment could be in the 8% to 9% range, according to estimates.

Only two months of consumer price data – August and September – remain to calculate the adjustment. September data will be released October 13 by the US Bureau of Labor Statistics.

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