More than 70 million people in the United States who are Social Security recipients will see their income improve starting next year. The adjustment for inflation in your monthly checks will be the largest in forty years. The actual figure for this economic surge will be announced on October 13th. This will happen as soon as the inflation data for September is known.
However, as discussed on the subject in August, the Social Security cost-of-living adjustment is expected to be 8.7%.
The Seniors’ Federal Group gave the calculation of this number as an estimate. It’s slightly lower than the August forecast, which was 9.6%. After the unveiling of these statistics, a small drop in inflation to 8.3% is noted.
However, if this forecast is maintained, the cost of living adjustment will be the largest since 1981. At that time the change was 11.2% due to the prevailing inflation.
More than 52 million older adults will benefit
Among the 70 million Americans who will benefit from the increased payment are 52.3 million adults age 65 and older.
Likewise, there is another, much larger group of people who receive disability benefits and supplemental security income.
The cost of living adjustment, known as COLA, is calculated each year using a formula established in federal law.
A measure of inflation known as the consumer price index for white-collar and municipal workers is used.
Social Security averages the resulting numbers in the third quarter of each year and compares them to the previous one.