LOUISVILLE, Ky. (WDRB) -- Social Security beneficiaries will get a big 8.7% increase in 2023, the highest increase in 40 years.
Amid high inflation, the Social Security Administration announced the change will result in a benefit increase of more than $140 per month, on average, starting in January. The move will directly affect about 65 million Americans receiving Social Security benefits.
Whether that will be enough to counter higher grocery and fuel costs is unclear. Advocacy groups in recent months have pushed for more assistance for veterans and retirees dependent on the payouts as inflation has risen.
"Hopefully you have that 6-12-month reserve of your cost of living," said Rob De Lessio, a Louisville-based financial advisor. "Hopefully you have those reserves in your emergency plan in the bank. This is the time to use them, because there is no sense in having them there if you are not going to use them. They are for an emergency."
The last time the cost-of-living adjustment was higher was in 1981, when the increase was 11.2%.
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