As we enter the month of September, the time is fast approaching when retirees living in the United States will know what their Cost of Living Adjustment (COLA) percentage will be added to their monthly income.
Expectations are much higher than the increase approved for 2022, which was 5.9%, a historic percentage in itself. However, for this year 2023 this amount would fall short and everything has to do with the inflation of the last months.
And to calculate the Cost of Living Adjustment (COLA), the Social Security Administration (SSA) must calculate the inflation recorded in the months of July, August and September.
They do so based on the percentage increase in the Consumer Price Index for Urban and White Collar Workers (CPI-W) in the third quarter of this year over 2021.
So far, estimates of how large the increases could be have been variable, but considering the July data and waiting to learn the August and September data in the weeks ahead, they are talking about at least 8.9% by 10.5%, which is about $175 more per month for average retirement savings.
While this would be a percentage not seen in many years, experts point out that it would not be positive news as it would suggest that Americans would face high inflation again, at least by early 2023, which is what a rise in commodity inflation implies. and Medicare insurance policies.