High inflation points to bigger Social Security cost-of-living adjustment for 2023

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Retirees who are feeling the pinch of higher prices, take heart: There could be a much bigger Social Security cost-of-living adjustment next year.

A preliminary estimate from The Senior Citizens League, a non-partisan senior group, finds that the 2023 cost-of-living adjustment, or COLA, could be as high as 7.6%, based on the latest Consumer Price Index data.

In comparison, the Social Security COLA for 2022 in January was 5.9%, the highest bump in 40 years.

Data released Thursday found that the Consumer Price Index for all Urban Consumers, also known as the CPI-U, notched a new 40-year high with an increase of 7.9% over the past 12 months.

The Social Security COLA is calculated based on another measure, the Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W.

[“source=cnbc”]

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