Preliminary Estimates Indicate the 2023 COLA May Be Significant
PUBLISHED BY: David W. Magann, PA
Tampa, FL (Law Firm Newswire) November 01, 2022 – Each year, the Social Security Administration, the federal agency tasked with administering Social Security benefits, reviews the monthly benefit payments made to recipients to determine whether they provide the same purchasing power as the year before. If the SSA determines that inflationary pressures reduced the purchasing power of Social Security benefits, it will modify the benefit amount. The SSA refers to this as a Cost of Living Adjustment (COLA). Late last year, the SSA announced the 2022 COLA increase would be 5.9 percent. This was one of the largest COLA increases in recent history; the average COLA increase is around 1.5 percent.
Usually, the Social Security Administration waits until October to announce the official COLA numbers; however, experts who monitor the current rate of inflation can usually come up with a ball-park figure earlier in the year. In a recent report, the Senior Citizens League estimated that the 2023 COLA increase may be even larger. According to its estimates, next year’s COLA increase could be as high as 7.6 percent.
While a COLA increase is certainly good news, it isn’t necessarily as good as it seems. This is because COLA increases are intended to combat the already existing effects of inflation. Thus, it isn’t as though a recipient will recognize the full benefit of the benefit increase because their costs have already gone up.
David w. Magann, Florida Social Security benefits attorney, explains, “recipients of Social Security are already seeing their purchasing power reduced since the beginning of the year. Housing prices, healthcare costs, and other everyday expenses are increasing. Thus, it is important that Social Security recipients understand what a COLA increase reflects and do not let the additional monthly benefits cloud their thinking when it comes to other purchases.”
Those who are eligible for Social Security benefits should ensure that they are receiving the benefits they are entitled to. This is especially the case during high periods of inflation, where costs are rapidly increasing.
Attorney David W. Magann is a Florida social security and disability attorney with extensive experience handling the legal issues that many aging individuals face. His offices are located in Tampa and Brandon, FL. Attorney Magann is a compassionate advocate who unceasingly pursues the interests of his clients and provides practical advice on a variety of other pertinent legal issues, including estate planning, veterans’ law and personal injury law. Attorney Magann can be reached at http://www.floridasocialsecurity.com/.
Learn more at http://www.floridasocialsecurity.com/ David W. Magann, P.A. Main Office: 156 West Robertson Street Brandon, FL 33511 Call: (813) 657-9175 Tampa Office: 18715 N Dale Mabry Hwy Lutz, FL 33548