The greatest yearly rise since 1981, the Social Security Administration said on Thursday that payouts would increase 8.7% in 2023.
The difference in inflation between the third quarter of the prior year and the current year determines the cost of living adjustment, or COLA.
The difference in inflation between the third quarter of the prior year and the current year determines the cost of living adjustment, or COLA.
According to nonprofit organisation AARP, the rise in 2023 will add an additional $145 to the typical monthly Social Security payout.
According to AARP CEO Jo Ann Jenkins, "Social Security is the largest source of retirement income for most Americans and provides nearly all income for one in four seniors."
Jenkins continued, "High inflation continues to be an issue for older Americans, making the guaranteed payments given by Social Security, particularly the yearly COLA, more important than ever.
Benefits from Social Security have been automatically increased yearly since 1975 in accordance with rises in the cost of living.