Social security checks are expected to jump next year

(KTLA) – It’s not exactly a bright spot, but it is is a sign of the times.

It is almost certain that social security recipients will receive a record high adjustment of the cost of living next year, as inflation stubbornly remains at its highest level in 40 years.

The Bureau of Labor Statistics reported Wednesday that the consumer price index rose 9.1% in June from a year earlier.

That is well above the 8.6% rate seen in May and exceeded the 8.8% rate that many economists had expected.

The impartial Senior Citizens League now estimates that social security beneficiaries will receive a cost-of-living adjustment of 10.5% by 2023.

That would translate to average monthly checks rising $ 175.10 to $ 1,668.

Just two months ago, the group predicted an 8.6% increase for next year.

Nothing is decided. The Social Security Administration is tabulating annual cost-of-living adjustments based on third-quarter data, and we are not there yet.

In other words, the next few months will be crucial.

And there’s another wild card: Medicare.

Medicare Part B premiums are typically deducted from Social Security checks. In other words, a marked increase in health costs can mitigate the cost of living.

And keep in mind that the larger the social security checks, the faster the programme’s trust funds will be depleted.

That does not mean that Social Security goes bankrupt, as some are happy to say. But that means the program will have a hard time meeting its financial obligations.

Current estimates say that the trust funds will run out of money in 2035, at which point social security will only be able to cover about 80% of current benefits.

In the past, such deficiencies were addressed by legislators through higher taxes and / or reduced benefits. This is exactly how the program was designed – a work in perpetual progress.

In the current political climate? Well, it’s all too easy to imagine boring legislators touching on tough decisions and creating an unnecessary crisis.

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