In 2023, Social Security's CPI will rise 8.7%, the most in 40 years.

By The Exchange Team

Social Security beneficiaries will receive an 8.7% boost in benefits in 2023, the biggest increase in 40 years, despite record-high inflation.

Thursday's announcement came from SSA. It will result in a $140-per-month average benefit hike in January.

The average monthly Social Security senior income will rise by $146 to $1,827 in 2023, up from $1,681 in 2022.

Last month, the Senior Citizens League estimated the COLA may reach 8.7% next year.

The 8.7% increase beats the 5.9% hike in 2022, which was the largest in four decades.

The unprecedented increase for next year comes as beneficiaries have struggled with rising prices this year.

The most recent time the cost-of-living adjustment was higher was in 1981, when it was 11.2%.