In less than two weeks, the Social Security Administration (SSA) will announce the amount of the increase based on the Cost of Living Adjustment (COLA) in retirees’ checks starting in January of next year.
On 13 October morning, the agency is supposed to report publicly on the scope of the annual calculation that seeks to establish an amount enough money so that the beneficiaries of its programs can face inflation.
At the moment, the SSA is waiting for the inflation figures for September to determine the amount, which analysts have anticipated would be the largest in 40 years or comparable to the amounts awarded in 80.
This year, retirees have been receiving checks with a 5.9% increase , which is equivalent to an additional $93 dollars monthly.
The authorities use the Consumer Price Index to Tra Employers Salaried in Urban Areas and Administrative Workers (CPI-W) to establish the amount to be paid to retirees. Under this formula, the authorities measure the inflation levels between July and September.
The measurement seeks that the recipients of the Social Security programs have the necessary income to face the increase in the prices of products and services.
Experts have warned, however, that the measurement is insufficient, since it does not consider other essential expenses of the elderly such as health care and housing.
The CPI fell to 8.5% in July, and to 8.3% in August. The foregoing has led those who are knowledgeable about the subject to make more conservative estimates in relation to the increase applicable next year.
The most recent figure indicates that Social Security benefits would increase 8.7% as of next year.
Forecasts have varied from June to here. The Committee for a Responsible Federal Budget estimated that month that the amount could increase up to 11.8%, equivalent to $180 extra monthly. The following month, Marc Goldwein, the committee’s policy director, anticipated an increase of 11.4%.
In In August, Richard Johnson, director of the retirement policy program at the Urban Institute, told AARP that it would be reasonable to estimate an increase of 9%.
However, the figure that has sounded the most in recent days is 8.7% due to lower inflation levels, according to the Senior Citizens League. The entity had previously estimated a COLA increase of 9.6%.
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