Associated Press
Millions of Social Security recipients will get an 8.7% boost in their benefits in 2023, a historic increase but a gain that will be eaten up in part by the higher cost of everyday living.
The cost-of living adjustment — the largest in more than 40 years — means the average recipient will receive more than $140 extra a month beginning in January, the Social Security Administration said Thursday.
While Social Security recipients welcomed the benefit increase, many said it wasn’t enough to cover the impact of inflation.
It’s ”not much help,” said 85-year-old Shirley Parker, who lives in Chatham on Chicago’s South Side,
Home maintenance costs and high grocery prices are cutting steeply into her budget. “Food is ridiculous. I come out with a bag full of groceries — $50 — don’t have about 10 items,” she said.
The Social Security COLA was established to help seniors and other recipients manage the higher cost of food, fuel and other goods and services How well it does depends on what inflation does going forward.
In fact, a separate government report Thursday showed inflation newly accelerating,. The Consumer Price Index rose 0.4 percent for September after just 0.1 percent in August and is up 8.2 percent for the past 12 months. Jobless claims for unemployment benefits rose for the week.
The Social Security Administration said the estimated average monthly Social Security benefit for all retired workers will be $1,827 starting in January, according to an agency fact sheet.
The boost in Social Security benefits will be coupled with a 3% drop in Medicare Part B premiums, meaning retirees will get the full impact of the Social Security increase.
The financing setup dates to the 1930s, the brainchild of President Franklin D. Roosevelt, who believed a payroll tax would foster among average Americans a sense of ownership that would protect the program from political interference.
Next year’s higher payout, without an accompanying increase in Social Security contributions, could put additional pressure on a system that’s facing a severe shortfall in coming years.
Earlier this year, Sen. Rick Scott issued a detailed plan that would require Congress to come up with a proposal to adequately fund Social Security and Medicare or potentially phase them out.
Senate Minority Leader Mitch McConnell publicly rebuked the plan and President Joe Biden has used Scott’s proposal as a political bludgeon against Republicans ahead of midterm elections.
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Published with permission of the Associated Press.
