As Inflation Soars, So do COLA Predictions - AS USA
While it’s way too early to accurately predict what the 2023 Cost of Living Adjustment (COLA) for 2023 might be, the continually rising inflation rate suggests an even higher COLA increase for Social Security recipients next year. Good news? Well, certainly an increase in your Social Security benefit can’t be viewed as bad. But reality is that the COLA increase is always an after-the-fact computation, because COLA is measured using the inflation number which exists during the 3rd quarter of each year for COLA which takes effect the following year. Thus, we’ve already been paying highly inflated prices for many months before we get that higher Social Security benefit. To make matters even worse, in the face of continually rising inflation, the COLA increase may be considerably less than the actual price inflation we experience. Despite it being too early to accurately predict what next year’s COLA will be, it’s not to early to speculate, as is done in this AS USA article by Oliver Povey. Click here to read more.