Millions of retirees depend on Social Security as a crucial income source. That may especially hold true these days, given the way inflation is wreaking havoc on seniors’ budgets.
Meanwhile, each year, Social Security undergoes its share of changes, some of which can work to seniors’ advantage. And one such change that commonly gets announced in October could be essential to seniors’ financial stability come 2023.
Each year, Social Security benefits are subject to a cost-of-living adjustment, or COLA, the purpose of which is to help seniors maintain their buying power in the face of inflation.
This year, Social Security benefits rose 5.9% in response to inflation levels in late 2021. But seeing as how living costs have soared even more in 2022, it’s fair to assume that next year’s COLA will be even more substantial.