The Social Security Administration announced the payment increase due to the cost-of-living adjustment (COLA). The COLA is the Social Security Administration’s response to the rate of inflation. Inflation has impacted the country this year with an 8.3% increase since 2021. The COLA adjustment will help seventy million social security recipients pay for their medications, grocery bills, and rent. The 8.7% increase is the largest since 1980 when the Social Security Administration made a 14.3% COLA adjustment.
The 8.7% adjustment translates to an average increase of $144 per month for social security recipients according to a CNBC report.
The Senior Citizens League, a bipartisan lobbyist group that advocates for senior citizens, announced their estimated increase last Tuesday. The official percentage increase will not be announced until Oct. 13th.
The annual percentage increase is taken from a standard formula written into federal law according to the New York Times. The Social Security Administration takes the average of the Consumer Price Index for Urban Wage earners and Clerical Workers during the third quarter and compares it to the previous year.
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