Why Seniors Might Be in Better Financial Shape in 2023

Starting in January, older Americans are set to get the biggest Social Security benefits boost in 40 years. The 2023 cost-of-living adjustment (COLA) was set at 8.7 percent to help offset inflation. According to an article in USA Today, seniors whose primary income source is Social Security saw their buying power shrink as living costs soared this past year, but that could change in 2023.

To help rein in the record-high inflation, the Federal Reserve has been raising interest rates, and it appears to be working. The consumer price index, which is used to calculate inflation, was only 7.7 percent in October — a point less than the Social Security COLA.

If inflation rates continue to shrink in 2023, retirees could be in better financial shape as their Social Security benefits boost will increase their buying power. Yet that will take time.

The Seniors Trust is committed to improving the financial well-being of America’s retirees now through passage of The Social Security Expansion Act. It will give retirees an immediate benefits increase of about $200 a month, a fair annual cost-of-living adjustment (COLA) and increased minimum benefits.