COLA Watch 2023: Another Extraordinary Forecast…With a Look at the Downside - CNBC
We’re almost one month into the measurement period for calculation of next year’s Social Security cost-of-living adjustment (COLA), and projections are consistently surfacing of an increase north of 10 percent. The CPI reports for the July, August, and September will, of course, determine what the January 2023 adjustment will actually be, but many predictions are clustered in the 10% to 11% range, and CNBC personal finance reporter Annie Nova offers a similar forecast in a post today on their website.
What’s unique in Ms. Nova’s post is the perspective offered with the comment that “for many retirees, the bump in their annual cost-of-living adjustment won’t be enough to shield them from the pain of sharply rising prices, experts say.” Many folks writing in this subject area are in agreement with this sentiment, recognizing that even if the 2023 COLA exceeds the nominal rate of inflation calculated by the Bureau of Labor Statistics (BLS) in October, seniors will likely fall behind in their struggle to deal with rising costs. Quoting Nancy Altman, president of Social Security Works, Ms. Nova’s post explains that “Unfortunately, the formula used to calculate the adjustment doesn’t reflect the specific expenses that seniors face, especially rising medical costs. Moreover, the underlying benefits are inadequate.”
On the upside, Ms. Nova’s post covers several suggestions for seniors to investigate as they deal with the financial quandary posed by our country’s current and projected economy. She cites, for example, the potential for insurance premium assistance, opportunities for food benefits, and the possibility of Supplemental Security Income (SSI) eligibility.
Check out Ms. Nova’s CNBC post here…