Social Security Payments: Experts Believe 2023 COLA Increase Is Not Enough Amid 'High-Inflation Period'

Social Security payments beneficiaries will experience a double-digit figure for the 2023 COLA increase for the first time in more than four decades as rising inflation rates continue in the United States.

A non-partisan seniors advocacy group, the Senior Citizens League, initially projected that the 2023 COLA increase will be about 10.5%. If the projection was to occur, it will be the first time COLA increase has reached double digits since 1982.

Recently, it was reported that the COLA will be increased to 8.7%, which is the highest increase since 1981.

Social Security beneficiaries will see the 2023 COLA increase reflected on their checks by January 2023. Some will receive it earlier, being a recipient of Supplemental Security Income benefits.

Senior Citizens League political analyst Mary Johnson said in a statement that a COLA of 8.7% is "extremely rare" and would be the highest received by most Social Security recipients alive today.

2023 COLA Increase

The COLA has only increased above 7% five times since 1975 when it was introduced. However, despite the increase, many were not satisfied.

The Motley Fool surveyed 750 retired Americans, with 55% of respondents answering the COLA increase was not enough.

In addition, the survey also noted that 70% of retirees rely on Social Security benefits, with 85% of retired Americans have noticed the effect of the continuous rise of inflation rates on their daily expenses.

The same respondents admitted that it is stretching their budget.

More than half of retired Americans are concerned about Social Security's longevity, with almost 60% of respondents to the survey saying they were at least "slightly worried" about Social Security being around through their full retirement.

Experts also argue that the 2023 COLA increase might not be enough fo4 Social Security benefits recipients.

Senior Citizens League noted that the 2022 COLA fell short by 48% through August, which left the average beneficiary shortchanged $417 for the year to date.

Johnson told CNET that they are still expecting an ongoing shortfall in 2023.

The National Council on Aging also called the 2023 increase "insufficient," with the organization's statement saying that the programs are "not meeting today's realities."

Social Security Payments

The Social Security Administration has shown how the 2023 COLA increase of 8.7% will affect payments for different groups.

Social Security retirees will get an average monthly increase of $146, with their average 2023 check worth $1,827.

For workers with disabilities, an average monthly increase of $119 will be applied to their payments while their average 2023 check will be worth $1,483.

The senior couples both receiving benefits will have an average increase of $238, with their 2023 average check will be worth $2,972.

A widower receiving benefits will have an average monthly increase of $137, with $1,704 average checks.

A widower with two children will have an increase of $282 with average checks worth $3,520.

Social Security will be sending letters for their beneficiaries, which would detail each recipient's benefit rate for the year of 2023.

This article is owned by Latin Post.

Written by: Mary Webber

WATCH: Social Security Benefits Increase in 2023 - from U.S. Social Security Administration