As inflation continues to rise, those living on Social Security benefits have been hit hard. They may be getting some relief in 2023, according to the latest Cost of Living Update from the Senior Citizens League.
Mary Johnson, Social Security, and Medicare policy analyst for the SCL, said that the group estimates there will be a massive 8.7% cost of living increase in 2023. She said that would result in an extra $144.10 per month for beneficiaries.
That would be the largest increase since 1982, when the Social Security Administration increased benefits by 7.4%
Johnson noted that while inflation is slowing, it has still resulted in higher costs for everything from food to medicine.
"Across the board, retired and disabled Social Security recipients spend a bigger portion of their incomes on healthcare costs, housing, and food and less on gasoline. Over the past 12 months, they rank food costs as their fastest growing expenditure, housing, and transportation in that order," Johnson wrote.
Johnson said that her estimate is based on the latest economic data released by the Labor Department. There is still one month left before the Social Security Administration announces the decision on 2023's cost of living increase. The SCL expects that announcement to come on October 13, after the consumer price index data from September is released.