Why Your Social Security Increase Could Be Lower Than Many Expect

[HarryHawk]

Why Your Social Security Increase Could Be Lower Than Many Expect

Just how huge will your Social Security cost-of-living adjustment (COLA) for 2023 be? Some predict the increase will approach 11%. Others say it will be closer to 10%.

But it could be prudent to adhere to the old adage about not counting your chickens before they hatch. Here's why your Social Security increase might be lower than many expect.
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Perhaps the most important thing to know about how COLAs are calculated is that the SSA only uses the average CPI-W numbers for the third quarter of the current and previous years. It doesn't matter how much inflation might soar earlier in the year. Only Q3 matters.

 

[Alligatorob]

Given what I have come to "expect" from the government, I will be surprised by any increase...

If you put the federal government in charge of the Sahara Desert, in 5 years there'd be a shortage of sand.
Milton Friedman

 

[ronaldj]

"I'm from the government and I am here to help." if that does not scare you, nothing will.

 

[Paladin1950]

My Social Security last year was the largest increase since I started collecting Social Security. Supposedly, it was the largest increase since the 1980's. So if it is not so big this year, I won't complain.

 

[Don M.]

Rather than prioritizing SS increases due to inflation, the government should be working on the long term solvency of this program. If action isn't taken to properly fund the future of this program, the day will come when benefits are slashed for millions of recipients, and SS will become little more than a welfare program for those with no other sources of income.

 

[JustBonee]

Why Your Social Security Increase Could Be Lower Than Many Expect

Just how huge will your Social Security cost-of-living adjustment (COLA) for 2023 be? Some predict the increase will approach 11%. Others say it will be closer to 10%.

But it could be prudent to adhere to the old adage about not counting your chickens before they hatch. Here's why your Social Security increase might be lower than many expect.
.
.
.
Perhaps the most important thing to know about how COLAs are calculated is that the SSA only uses the average CPI-W numbers for the third quarter of the current and previous years. It doesn't matter how much inflation might soar earlier in the year. Only Q3 matters.

As of August ... I'm reading the increase, will be somewhere between 8 and 9 percent for 2023.
They keep revising it down.

 

[Aunt Bea]

My Social Security benefits are taxed so most of the increase, if any, will end up back in the government coffers.

The good news is that the tax on Social Security benefits is used to shore up the Medicare program.

 

[Right Now]

My Social Security last year was the largest increase since I started collecting Social Security. Supposedly, it was the largest increase since the 1980's. So if it is not so big this year, I won't complain.

Exactly my thoughts on this issue. After a tiny 2 or 3 per cent increase the last few years, last year looked good! So if we may be receiving a bigger increase, well then, I accept with grace.

 

[dko1951]

I have tried to live my live by having no expectations of others, especially any government, as you will always be disappointed. I should add, I'm grateful for the fact I get anything at all. Can't imagine not having it when it's all I have.