Due to this year’s meteoric rise in the consumer price index, a measure of inflation in the cost of goods and services, Social Security beneficiaries will receive an 8.7% cost-of-living adjustment for 2023.
Only three times in the past 46 years has the COLA been higher - in 1979 to 1981 with an increase of 9.9%, 14.3%, and 11.2% respectively.
And while an 8.7% adjustment is significant, it’s important to put the figure in context with the top expense categories retirees will be spending their money on next year when the extra cash comes in.
Many seniors live on a fixed income in retirement. Social Security is often a large part of their income.
The numbers noted below are a 12-month national percentage change in the Consumer Price Index as of September 2022.
The largest expense for retirees is housing,