Why Seniors on Social Security Might End Up Thrilled With Their 2023 COLA
For years, seniors on Social Security have been sorely let down by their annual cost-of-living adjustments, or COLAs. In fact, the nonpartisan Senior Citizens League has found that seniors have been steadily losing buying power over the past two decades due to the inadequacy of COLAs as a whole.
This year's COLA certainly falls in line with that finding. In January, seniors on Social Security saw their benefits increase 5.9%. But with inflation hovering around 9% this summer, it's clear that a 5.9% raise hasn't given beneficiaries the buying power they've needed this year.
Meanwhile, initial estimates were calling for a 2023 COLA as high as 11% for Social Security recipients. At this point, it's pretty clear that an 11% raise is off the table. It's more likely that seniors will end up with a COLA in the upper 8% or low 9% range.
Source Fool.com
