Social Security claimants are set to get larger benefits in 2022, as inflation has shown no signs of slowing down each year. Social Security benefits are calculated based on a cost of living adjustments. Cola Where the Cola ends up depends on where the Consumer price Index winds up towards the end of the year. For March, the index surged by 8.5%, mainly due to the Russia Ukraine war and the supply still failing to meet the demand across the board.
As a result, that has the Senior Citizens League SEL revising its 2023 Cola estimate, now projecting it will rise to about eight. 9%. According to multiple reports in the media, in 2022, the average Social Security benefit is $1,657, while the maximum is $4,194 a month. The 8.9% increase would mean that the average benefit would climb to about $1,804, whereas the maximum would jump by roughly $373 to $4,567. Previously, the SCL estimated that the 2023 Cola would rise by 7.6%.
But keep in mind, things could change in a few months, as Social Security Administration SSA normally announces next year’s. Cola in the fall, in efforts to curb inflation, the Federal Reserve has started hiking interest rates, which aims to calm down the demand by making borrowing more expensive. The Fed is not only expected to increase rates again in May by up to 50 basis points, but multiple times this year after that. Plus, where inflation winds up could depend on if the Russian Ukraine war continues to escalate. In fact, millions of retirees are getting less from Social Security checks, despite the Cola booth.