Social Security Report

The 2023 Cost of Living Adjustment (COLA): A Sobering View - Motley Fool

Media predictions of another historic Cost of Living Adjustment (COLA) coming in 2023 are raising expectations for millions of Social Security beneficiaries. Some pundits are suggesting that those who depend heavily on Social Security may see their monthly check increase by over 11% starting in January. The hyperbole touting a forthcoming big raise is nearly constant, but is it setting us up for future disappointment? Probably so, as inflation (on which COLA is based) seems to be moderating. But the big elephant in the room, as pointed out in this Motley Fool article, is that whatever the COLA increase turns out to be, American seniors will continue to lose buying power, as they have for many years. And that’s because consumer prices on things which seniors typically buy are even higher than whatever COLA increase is finally awarded. All of this is discussed in detail by Motley Fool’s Sean Williams in this article.

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