More than 70 million Americans who receive Social Security benefits can expect an inflation adjustment to their monthly checks next year that will be the largest in four decades.<\/p>\n
Government inflation figures for August, released Tuesday, point to a Social Security cost-of-living adjustment, known as the COLA, of 8.7%, according to an estimate by a nonpartisan group that lobbies for seniors. The Social Security Administration will announce the final figure Oct. 13, after the release of September inflation data.<\/p>\n
The 8.7% estimate by the group, the Senior Citizens League, is lower than the league\u2019s prediction last month of 9.6%. The revision reflects the recent slight cooling of inflation to 8.3%. But if the league\u2019s projection holds up, the COLA still would be the largest since 1981, when the inflation adjustment was 11.2%.<\/p>\n
Rising Medicare premiums often take a significant bite out of COLAs. The premium for Part B (which covers outpatient services, such as doctors\u2019 visits) typically is deducted from Social Security benefits. Large increases in Part B can sharply reduce, or even eliminate, a COLA. But next year, most experts expect the standard Part B premium to rise very modestly, or even stay flat at the current $170.10 per month.<\/p>\n
\u201cSeniors are so accustomed to the Part B premium consuming so much of the COLA — I think they\u2019re in for a pleasant surprise this year,\u201d said Mary Johnson, a policy analyst for the league.<\/p>\n
The 2023 COLA will give a significant boost to more than 70 million Americans — a group that includes 52.3 million people older than 65, along with a broader group that includes survivors of beneficiaries and people receiving disability benefits and Supplemental Security Income, the program for very low-income people.<\/p>\n
This article originally appeared in The New York Times.<\/p>\n