Social Security Benefits

Retirees in the country are enjoying the 8.7% increase in Social Security Benefits this year, but are they going to enjoy another increase next year?

Social Security Benefits
Will there be an increase on Social Security Benefits next year? (Photo: Smart asset)

Increase in Social Security Benefits

Retirees are enjoying the historical 8.7% increase in Social Security Benefits this year since 1981. This increase is due to the increase in the Cost-of-Living-Allowance (COLA). However, many recipients are wondering if there will be another increase next year.

In a published article in The Motley Fool, it is still too soon and it cannot yet be determined this time the amount or increase of Social Security benefits next year. There is a way how to calculate the benefits and it is by comparing the average Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the third quarter with the average for the same quarter in the prior year.

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What the Data Says on the Increase of Social Security Benefits?

According to a report published in NASDAQ, the only available data in terms of CPI-W is only from the months of February to April but the data for the month of May is still not available. Using the data provided, it was found that there could only be an increase of 1.5%.

However, it is important to know as well that things could change. If the CPI-W will increase every month, then the amount of Social Security Benefits will be bigger next year.

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By Neil