Social Security Boost
The Social Security Administration will announce the annual cost-of-living increase today for more than 70 million Americans. The increase is estimated to be 8.7%, the largest since 1981. In comparison, the 2022 increase was 5.9%, and the average increase is 1.4% per year.
The number is calculated using the consumer price index for urban wage earners and clerical workers from July through September (see how it works). The 8.7% projection is based on data from July and August. September's data are due today. Another factor affecting the boost would be September's 0.75% interest rate increase. A larger benefit amount can maintain buying power in the face of rising inflation.
About a quarter of Americans, primarily retirees, receive Social Security benefits. Average monthly retirement benefits are $1,656; the new adjustment could increase that number by roughly $144. The current projected depletion date for the Social Security trust fund is 2035.