Seniors are still feeling the pinch from the high prices, which will probably see their increase in the monthly Social Security benefit to more than $57 in the next year.
The Senior Citizens League, or the SCL, estimated the cost of living adjustment for Social Security or the COLA, is supposed to be 3.2% next year, increasing the average monthly retiree benefit, which is $1,790 by $57.30, which starts in January 2024. The estimate depends on the recent inflation data that was released on Wednesday.
That remains far below the 8.7% rise in the benefits that were received this year but comparatively higher than the average of the previous 20 years, which was 2.6%, and above the 3% hike that was apparently crystalballed in the previous month.
Moreover, it will still be a piece of welcome news for over 70 million senior citizens who are retired and the disabled workers who look forward to continuing to be crushed under the sharp prices, like those seen in healthcare and housing, as per the nonpartisan group.
The estimate depends on the inflation data that is received from the Bureau of Labor Statistics that portrayed consumer prices increased 3.7% in August in the previous year, which is a jump from the 3.2% annual increase in July.
The original COLA, which the Social Security Administration is anticipated to announce in the middle of October, is calculated by doing an average of the Consumer Price Index for Urban Wage Earners and Clerical Workers [CPI-W] for the year’s third quarter, which is July, August, and September of this years and making a comparison of the same data for the previous year. The CPI-W rose by 3.4% over the past 12 months, which is a little higher than the inflation figure in the headline. However, for the month, the index rose 0.6% before the seasonal adjustment.
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