Social Security could experience its biggest raise in decades.
By The Exchange Team
As inflation cools, retirees may not enjoy a double-digit gain in Social Security next year, but they could still see a hefty bump.
The COLA for Social Security payments, or , could rise 9.6% next year, lifting the average retiree income of $1,656 by $159 per month.
That would still make it the most significant gain since 1981.
A retiree with a $1,656.30 monthly benefit and a $92.30 COLA in January requires $53.40 more each month to retain purchasing power.
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) rose 9.1% year over year in July, down from 9.8% previous month.
The headline Consumer Price Index (CPI) rose 8.5% year over year in July, down from 9.1% in June as fuel, travel, and used car prices fell.
According to the Senior Citizens League, if inflation is lower than average in the next two months, the COLA may be 9.3%.