Social Security: Must-Know Facts for October 2022

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October is a big month for beneficiaries of Social Security and Supplemental Security Income (SSI). The Social Security Administration announces changes each year, but the biggest one will be announced this month and go into effect in 2023.

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Each year, the SSA announces the cost-of-living adjustment, or COLA, which helps account for inflation. COLA is equal to the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for a specific period. The CPI-W measures changes for certain goods and services on a year-over-year basis.

It’s estimated that the COLA for 2023 will be higher than the 5.9% increase for 2022. The Consumer Price Index (CPI) report for September 2022 is scheduled for release on Oct. 13, which is when the 2023 COLA is expected to be disclosed.

Retirees could see one of the biggest increases in recent memory. It’s estimated that the COLA for 2023 will be 8.7%, according to The Senior Citizens League, a non-partisan seniors advocacy group. This is based on the latest Consumer Price Index report, which showed the annual rate to be 8.3% in August 2022.

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A COLA of 8.7% would increase the average retiree benefit of $1,656 by $144.10, according to the TSCL’s press brief. You can calculate this increase by taking your gross monthly Social Security benefit and multiplying it by .087.

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“A high COLA will be eagerly anticipated to address an ongoing shortfall in benefits that Social Security beneficiaries are experiencing in 2022 because inflation is higher than their 5.9% COLA,” Mary Johnson, TSCL’s Social Security and Medicare policy analyst, told GOBankingRates in an email.

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About the Author

Josephine Nesbit is a freelance writer specializing in real estate and personal finance. She grew up in New England but is now based out of Ohio where she attended The Ohio State University and lives with her two toddlers and fiancé. Her work has appeared in print and online publications such as Fox Business and Scotsman Guide.
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