Towards the end of 2021, when the 2022 Cost-of-Living Adjustment (COLA) numbers were announced for seniors receiving Social Security benefits, many retirees felt cautiously optimistic about the increase in their benefits. However, high inflation this year has meant that the 2022 COLA fell far short.
Recent reporting by CNBC indicates that the 5.9 percent increase has failed to keep up with the rising inflation. While the average monthly increase of $92.30 may have felt like a win to some, many retirees are now finding it difficult to make ends meet even with the COLA increase. In fact, this increase fell short by $42.35 per month—meaning that retirees needed an increase of 46 percent more to keep up with inflation.
While the 2023 COLA, which will be an 8.7 percent increase, may be more in line with the inflation rate, it doesn’t make up for the loss of purchasing power retirees have felt this year. Since Medicare Part B premiums are actually declining, this increase will put more purchasing power in the hands of seniors. But, many have already felt the pinch brought on by a COLA that fell short in 2022.
The Seniors Center is here to help retirees understand their benefits—and we’re also calling on Congress to take action to protect the future of Social Security. Learn more about our mission today and follow us on Twitter and Facebook to keep up with our latest posts.