Your Social Security Benefits May Increase in 2023

Oct 2022

While high inflation has certainly reared its ugly head throughout 2022, retirees have a bit of relief coming their way: the cost-of-living adjustment (COLA) for 2023’s Social Security benefits is set to be 8.7%. This will mark the largest COLA increase since 1981.

But what does 8.7% mean for retirees?

If you’re currently receiving the average monthly benefit ($1,656), you can expect to get an additional $140 per month in 2023. This increase is certainly a welcomed adjustment for many people who look forward to their social security benefits each month.

Another impactful economic marker, the Consumer Price Index (CPI) rose 0.4% in September. This indicates an 8.2% jump between last year and now. This news may come as no surprise, considering the rising costs reflected at the grocery store, restaurants, on your utility bills, and just about everywhere else.

While no one can predict the future, the Federal Reserve’s aggressive interest rate increases show it is determined to bring down inflation. As the year starts to wind down, now is an excellent time to check in with your financial advisor. Despite the challenges the market brings, there are many opportunities for smart investors. At Bloom Advisors, we encourage clients to come in regularly to discuss their portfolio and how our overall strategy takes into account economic factors such as inflation.

Have a question for our team, or interested in setting up an appointment? Email help@bloomadvisors.com to connect with one of our advisors.

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