The most recent COLA for Social Security benefits and other SSI payments was 5.9 %. The increase took effect in December 2021, with the first new payments incorporating the 5.9 percent increase made in January of this year.
An additional increase is expected by the end of the year, with some reports suggesting that it could be as much as 11%.
Social Security Cola increase 2023
If inflation continues at its current rate, seniors could see a COLA of 10.8 percent by early 2023, the highest in more than 40 years.
In May, the rate of inflation reached 8.6 %. According to a report by the Committee for a Responsible Federal Budget, a nonpartisan organisation that educates the public on fiscal policy issues, these levels of inflation could result in a COLA of nearly 11% this year.
Even if inflation stops suddenly in the final months of the year, which does not appear likely at this point, senior citizens can expect a COLA increase of up to 7.3 percent.
The non-profit group said on Monday that the COLA increase for Social Security recipients next year will fall somewhere between those two figures, implying that the average Social Security check will rise from $1,658 to $1,837 at the higher end of their forecast. The average check would rise to $1,790 at the low end of the scale.
Either way, the growth is likely to be historic. A 8% increase would be the fourth largest in the history of Social Security. It would be the same as the 8% increase in 1975, only surpassed by the 9.9% increase in 1979, the 11.2 percent increase in 1981, and the 14.3% increase in 1980.