Social Security benefit forecast revised for 2023 as inflation eases

According to The Senior Citizens League, Social Security benefits are expected to increase significantly in 2023, but it could be less than previously forecast. ,iStock,

Record 2023 Social Security benefit growth could be lower than previously expected as inflation eases, according to a new forecast from the Senior Citizens League.

Consumer Price Index (CPI), a measure of inflation, Augmented 8.3% annually in AugustThe Bureau of Labor Statistics (BLS) said there was a slight improvement from 8.5% in July. This marks the second consecutive month of reduction in the annual inflation rate.

The latest CPI data showed that the Social Security cost-of-living adjustment (COLA) could be 8.7% for 2023, according to The Senior Citizens League. This is lower than the group’s forecast last month when it said profits could rise. up to 9.6% subsequent years. But while this increase is less than previously forecast, it will still be the highest increase received by the majority of Social Security beneficiaries alive today, the group said.

Last year, Social Security benefits 5.9% increase, According to the Social Security Administration (SSA), if benefits increase by 8.7% in 2023, it will be the highest increase since 1981, when high inflation pushed the COLA to 11.2%.

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Inflation moderates slightly for the second straight month in August – what this means for you

Average Social Security Increase for Senior Citizens

According to the Senior Citizens League, a COLA increase of 8.7% next year means the average Social Security recipient will receive $1,656 in monthly benefits and see an increase of $144.10 per month. Retirees can multiply their current check amount by .087 to see what your actual increase will be.

Following the release of September inflation data, the SSA will likely announce 2023 Social Security hikes in mid-October. The new benefit amount will be effective from January 2023.

“The purpose of COLA is to help maintain the purchasing power of Social Security benefits when prices rise,” the Senior Citizens League said in its forecast. “They are a sustainable increase that will gradually boost the total Social Security income that individuals will receive during their retirement. Without a COLA that adequately keeps pace with inflation, Social Security benefits will decrease over time and buy less, and that can create difficulties especially as older Americans live longer in retirement.”

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Survey says US consumer products ‘shrinking’ with new spending habits

More Americans are changing their spending habits as inflation rises

As inflation remains near its 40-year high, many Americans are beginning to cope by changing their spending habits, a. According to Recent survey from Morning Consult. Many consumers also said that they have noticed that the product size of their purchase is shrinking, which is referred to as “shrinkage”.

the survey said 54% of Americans have seen, read or heard something about shrinkage, and 64% are concerned about it. According to Morning Consult, about 48% of Americans said they bought a different brand when faced with shrinkage, and 49% said they chose a generic product instead.

Although inflation has improved over the past two months, it remains at levels not seen since the 1980s. the Federal Reserve interest rates continued to rise to counter rising inflation, but there are discussions about how these actions could potentially affect the US economy.

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