A Higher Cost-of-living Adjustment for Social Security in 2023 Is Predicted by Biden | Viral News!

Take heart, retirees who are feeling the pain of rising prices: the Social Security cost-of-living adjustment might be significantly higher next year.

According to a preliminary estimate from The Senior Citizens League, a nonpartisan senior organization, the cost-of-living adjustment, or COLA, for 2023 could be as high as 7.6 percent based on the most recent Consumer Price Index data.

In comparison, the Social Security cost-of-living adjustment for 2022 was 5.9 percent in January, the largest increase in more than 40 years.

With an increase of 7.9 percent over the past 12 months, according to data released Thursday, the Consumer Price Index for all Urban Consumers, generally known as the CPI-U, reached a new 40-year high for the first time in 40 years.

The Consumer Price Index for Urban Wage Earners and Clerical Workers, also known as the CPI-W, is used to compute the Social Security cost-of-living adjustment (COLA).

The Consumer Price Index for Urban Consumers (CPI-U) is a more general index that covers retail prices paid by all urban consumers.

For its part, the CPI-W is a more specific measure of retail prices that affects hourly wage earners and clerical workers in metropolitan areas, according to the United States Bureau of Labor Statistics.

Increased oil prices were a contributing reason to the Senior Citizen League’s current 7.6 percent forecast.

When compared to the CPI-U, the CPI-W gives a higher weight to food, clothing, transportation, and other goods and services than the CPI-U.

To be sure, the Social Security Administration will not determine the official cost-of-living adjustment for next year until the end of October.

There are many more months of data to come as a result of these circumstances.

Inflation will play a significant role in determining how high the COLA for next year will actually be.

This year, the Federal Reserve is likely to boost interest rates in an effort to slow the rise in the price of goods and services.

As a result, the COLA could be reduced even further than the present projection.

Retirees and other seniors who are struggling with high consumer costs may find respite if prices are moderated, according to a recent study.

According to the Senior Citizens League, the 5.9 percent cost-of-living increase scheduled for 2022 is already falling short for many retirees.

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According to the Senior Citizens League, the average retirement benefit is currently around $1,564, which is a modest amount.

Nonetheless, as of March, the benefit would need to be $1,698.50 in order to keep up with an 8.6 percent year-over-year increase in the CPI-W, which was recorded in February.

Following studies by The Senior Citizens League, there is currently a cumulative $107.90 gap in benefits for the average retiree as of the end of 2012.

In all seriousness though, Social Security is not intended to completely replace a person’s income in retirement, according to Mary Johnson,

a Social Security and Medicare policy analyst at The Senior Citizens League.

According to her, in order to account for inflation, pensioners would most likely have to make additional money from their pension or other investments in order to make up for the gap in record-high expenditures.