How a Social Security Benefit Boost Could End Up Hurting Certain Seniors
With inflation as high as it is, many experts predict we will see a large Social Security cost-of-living adjustment (COLA) for next year. This year’s was only 5.9 percent. If nothing changes, 2023’s could be around 10 percent — or higher. We won’t know for sure until it’s officially announced in October.
As Newsweek explains, while extra money is certainly good news considering the high prices for groceries and gas and other basic necessities, a bigger COLA could end up costing seniors much more in the long run. That’s because retirees who receive income-related benefits on top of their monthly Social Security checks could see the first reduced as the latter increases.
In addition, the change could possibly impact seniors with higher incomes as well, as their taxes would increase as a result of the higher benefits. This means people who had not paid taxes in years might need to start next year.
The Seniors Trust believes the best way to safeguard seniors’ retirement is through passage of the Social Security Expansion Act. One of the hallmarks of this landmark piece of legislation is that it would provide seniors with an extra $200 per month on average. That’s money that would certainly help make ends meet during this time of high inflation.
