By Marielis Acevedo
05 Sep 2023, 08:24 AM EDT
In just over a month, the Social Security Administration (SSA) is expected to announce the amount of the Cost of Living Adjustment (COLA) on checks for beneficiaries of its programs starting next year.
Although the official date has not been disclosed; historically, the Social Security Administration (SSA) makes the announcement in mid-October.
This responds to the fact that, to complete the calculation, inflation figures are needed up to September.
The COLA is established using the Consumer Price Index for Salaried Workers in Urban Areas and Clerical Workers (CPI-W).
The calculation is a comparison of the inflation levels of the third quarter of the year, that is, July, August and September, versus those of the previous year. If the current CPI-W is higher than the previous one, Social Security recipients will receive an increase next year.
Last year, the announcement was made on October 13. On that date, the SSA reported an 8.7% increase due to adjustment, one of the largest in the history of that calculation.
By 2024, the amount is expected to fall well below the expectations of retirees and other groups who receive Social Security checks.
The estimate at the time of the COLA increase starting next January is 3%.
The Senior Citizens League (TSCL), a non-partisan organization that watches over the rights of retirees, reported from its website last month that the adjustment is not expected to rise more than that number because inflation figures remain stable. .
“In general, the inflation rate in July is significantly lower than a year ago. However, most older Americans report that persistently high prices continue to weigh on their household budgets, according to the results of a new survey by TSCL.
“The Consumer Price Index for Salaried Workers in Urban Areas and Clerical Workers (CPI-W), the index used to determine the COLA, rose 2.6% year-over-year. However, the average monthly inflation rate has increased slightly, especially since January of this year, maintaining the COLA estimate at 3% based on July price data,” the entity details.
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