A Sobering View of the Expected Big COLA Increase - Motley Fool
Some pundits are forecasting a Cost of Living Adjustment (COLA) upwards of 11% for 2023. Realistically, however, a study of this year’s third quarter inflation rate so far suggests a more moderate, but nevertheless historic, increase to your monthly Social Security payment. To be sure, any Social Security increase will be welcomed broadly by America’s seniors, but it’s important to also understand that the reason COLA may be high is because inflation continues to soar at alarming rates. All of which means that we are all paying much higher prices for the things we buy and have been doing so long before we’ll get that 2023 increase. Translated into simple turns, America’s seniors will continue to lose buying power while inflation continues to plague our economy. Thus, it’s appropriate to think of a high 2023 COLA as a “good news – bad news” situation, as explained in this Motley Fool article by Jeremy Bowman. Click here to read more.