Social Security COLA for Seniors and Other Beneficiaries Could be 3 Percent or Lower in 2023
Seniors and other Social Security beneficiaries are entitled to an annual cost-of-living adjustment (COLA) to keep their payouts aligned with inflation. The COLA, determined based on changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), could be 3 percent or lower in 2023 based on recent inflationary trends, according to an early estimate from the Senior Citizens League.
The maximum monthly Social Security benefit for someone who retires at age 70 is $4,555, but it's unlikely that the maximum benefit today will be the same when you retire. If you start collecting benefits at age 62, the maximum benefit amount would be $2,572 per month. That amount goes up to $3,627 per month if you start collecting benefits at age 67. For those born in 1960 or later, the full retirement age is 67.
To be eligible for the $4,555 maximum Social Security benefit, you must have worked for 35 years so that you won't have any $0s in your benefits calculation for missing years. In addition, you must wait until age 70 to start collecting benefits. The SSA rewards you with a higher benefit amount if you delay retirement.
The first round of funds was sent out to eligible recipients on March 1, and the second disbursement will be delivered on March 31. In March, beneficiaries will receive a total of $1,828, with each payment being valued at $914. The first round of payments, for people born between the 1st and 10th of a month, went out to recipients on March 8. The second round of mail was dispatched on Wednesday, and was addressed to those born between the 11th and 20th of any given month.
The COLA (Cost-of-Living Adjustment) of the Social Security Administration is determined by the percentage rise of the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) in the third quarter of the year The Senior Citizens League's policy analyst for Social Security and Medicare, Mary Johnson, observed that the 12-month average rate for the CPI-W has been on the decrease, even when there was a month-to-month rise in inflation, as there was in January. Should inflation continue to decline, it may not come to pass. Johnson would be delighted if a moderate cost-of-living adjustment (COLA) could be made and inflation trended downward to a more standard rate of growth by the close of the year.
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