Social Security Income 2023: Changes Retirees Are About To Experience, Here’s What You Should Know
Retirees of 2023 will experience something that has never happened in 40 years and is unlikely to happen again.
An Unprecedented Increase In Social Security Benefits
According to a published post by the Motley Fool, here are some details on why this increase is so large and why older people are unlikely to experience such a large increase in their lifetime.
The Biggest Rise Since 1981
In 2023, the Social Security beneficiary will receive his 8.7% Cost of Living Adjustment (COLA). This is his biggest since 1981. It was the only two years since 1992 that the increase had exceeded 5% when beneficiaries increased by 5.9% in 2022 and 5.8% in 2009. You have to go back to 1981 to see benefits he exceeded 8.7% when the retiree received her COLA of 11.2%.
Don’t Expect Another Hike This Big
According to the advocacy group Senior Citizens League, “Today, this is the first and possibly the last time a beneficiary will receive such a high COLA.” The Senior League noted that in the entire history of the automatic COLA, dating back to 1975, only three years had significant performance gains. And the conditions that contributed to such a large increase are unlikely to repeat.
The surge in interest in 2023 is due to a unique combination of factors that have pushed prices up. COVID-19 led to supply chain disruptions, while demand increased as people got more money due to COVID stimulus checks and because they were forced to cut spending during months of closures.
