The annual Cost of Living Adjustment (COLA) for Social Security should be announced no later than October 13 and based on the inflation rate to date, may be as high as 8.7%.
It’s likely to be the biggest since 1981, which is when the U.S. was experiencing another bout of high inflation. That year, seniors got a benefit boost of 11.2%.
There are only two other years when seniors received COLAs bigger than what is forecast for 2023: 1980, when benefits got a 14.3% hike; and 1979 when benefits rose by 9.9%.
There have also been several years when beneficiaries received no bump at all, such as in 2009 and 2010, when the COLA was 0% due to flatlining inflation during the post-financial crisis years.
Managers and operators of affordable housing should stay alert for the announcement since any increase should be reflected in the annual income of persons receiving Social Security. Keep in mind that the COLA will also apply to SSI, Veterans pensions, railroad retirement, and Civil Service pensions.