As per the Social Security Administration, about 90% of Americans aged 65 and above collect Social Security benefits. “Among older Social Security claimants, 12 percent of men and 15% of women depend on Social Security for 90% or above of their income,” according to the report.
Since millions of Americans are dependent on the social security benefits to pay for housing and purchase food, the cost-of-living adjustment is one of the essential statements each year. As per the Senior Citizens League, based on earlier revealed inflation estimates, the Cost-of-Living Adjustment for 2023 would be 8.9%.
If the 8.9% forecast is correct, it will result in the largest increase in social security payouts in nearly 41 years. While this may appear to be a good thing at first, keep in mind that the cost-of-living adjustment is in place to keep pace with inflation.
The US Department of Labor officially unveiled that the consumer price index jumped by 8.5 percent in March compared to the same month a year ago, marking the biggest year-over-year rise since 1981. Due to tight supply chains, improving consumer demand, including global energy and food market disturbances aggravated by the Ukraine crisis, prices are said to have soared.
“The rising prices have been difficult for American households, particularly those with lower incomes, and dedicate a large portion of their budgets to basics,” according to The New York Times. As a result, a rise in social security benefits would definitely be welcomed by millions of Americans across the country.