Following the release of September’s consumer price index (CPI) report showing annual inflation of 8.2%, the Social Security Administration announced a new raise for the 70 million Americans who take part in its benefits programs.
The new cost-of-living adjustment will be 8.7%, reported AP News, and will be effective come January 2023.
The adjustment will add about $144 extra dollars for the average beneficiary who’ll now receive $1,656 a month.
The raise marks the highest cost-of-living adjustment the agency has issued in four decades, due to record-breaking inflation levels currently battering the country. The last time the cost-of-living adjustment was more than this year was in 1981 when it was raised 11.2%.
Last year, benefits were raised by 5.9%.
The new raise falls in line with predictions published last month by the Senior Citizens League, the country’s largest nonpartisan seniors group. Residents over the age of 65 represent 75% of all Social Security benefit recipients.
The adjustment will be coupled with a recently announced decrease in Medicare premiums of 3%, which will also come online next year.
While the adjustment will give some breathing room to folks depending on Social Security benefits, as consumer prices are expected to continue to rise.
Wall Street reacted poorly to news of the new inflation report. The S&P 500 opened 1.5% lower than at the previous market close, but stocks quickly recovered throughout the morning and into the afternoon.
Photo: FORMAT arw on Unsplash.
Image and article originally from www.benzinga.com. Read the original article here.