Benefits ticked up 5.9% this year, but they’re not keeping pace with rampant inflation.

I know that you guys have heard about the increase, that we are supposedly in store for, but I do not think that we should get really excited about this. There is a lot that could go wrong. We are looking forward to the uptick, but with inflation being how it is, we cannot think that its going to help us out. Housing keeps going up every single day, and it seems that food and gas are also an issue.

According to a research by The Senior Citizens League, another increase in 2023 could lift payments by 8.6%, the largest increase since 1981. According to the Social Security Administration, the average monthly payment for a retired worker increased to $1,658 this year, affecting about 70 million Americans. If the projection made by TSCL, a group that works for the elderly, is correct, beneficiaries might see another boost of roughly $143 per month in 2023, bringing their monthly check to almost $1,800.

The group’s forecasts are based on the most recent inflation data, such as the Consumer Price Index, which jumped 8.3% last month compared to the same period last year, according to a Bureau of Labor Statistics report released Wednesday. Last year, TSCL forecasted a 6.1 percent COLA increase in benefits, which was somewhat higher than the 5.9 percent rise that the SSA ultimately approved. The prior boost, according to Senior Citizen League policy advisor Mary Johnson, “isn’t keeping up with the rate of inflation today — and that is particularly challenging when you are trying to survive on a fixed income.”

The League wants benefit modifications to be based on changes in expenditures that affect seniors the most, such as health care. According to the report, rampant inflation has led Social Security payouts to lose 40% of their purchasing power since 2000, the largest loss since 2010. According to the TSCL analysis, Social Security purchasing power has decreased by ten percentage points in the last year, from 30 percent in March 2021 to 40 percent in March 2022.

The Cost of Living Adjustment (COLA) for the following year will be released by the Social Security Administration in October. In December, beneficiaries should get letters outlining their revised benefit rate for 2023. If you don’t receive this letter, you can check your exact increase on the My Social Security website.