NASHVILLE, Tenn. (WTVF) — Some very good news for every American who is drawing on Social Security.
For so many, it's just hard to make ends meet. But now, there's word more money is on the way and the boost is tied to the high cost of inflation.
It means that Social Security recipients will see one of the largest COLA adjustments in years — that's more money in their monthly payments. COLA is the Cost of Living Adjustment and it's good news for millions of Americans.
CBS News reports the Social Security Administration says seniors and others who rely on the benefits program are likely to get an 8% boost by the end of the year because of inflation.
"The cost of everything has gone up. Look at the price of food, the price of utilities, the cost of putting money into your car, as far as petrol... all of those things are increasing," said financial expert Dr. Friday Burke.
The COLA increase would represent the biggest cost-of-living adjustment since 1981.
So, how does this translate?
The average monthly Social Security check is about $1,600 and beneficiaries could see an increase of about $132 per month in early 2023, bringing the average check to about $1,800.
"I really think we need it. I know quite a few people on disability and Social Security and there's no question that they haven't been keeping up with the daily cost of living increases that are required," said Burke.
More money, of course, can be a big help. But it's important to keep in mind that Medicare costs, as always, will increase and will likely take up a good share of that additional money.
An 8% increase is an estimate based on current inflation.
Social Security is expected to announce the exact amount of the COLA increase for 2023 later this fall.
