Social Security Benefits to See Modest Increase in 2023 COLA

Retirees on Social Security will find out this week how big their 2023 COLA (cost-of-living adjustment) will be based on inflation.

The increase is expected to be around 3.2%, much lower than 2022's 8.7% bump which was the highest in 4 decades.

Higher COLAs can reduce eligibility for low-income programs and push people into higher tax brackets.

The average monthly retirement benefit is $1,790, so a 3.2% COLA would increase that by $57.

Advocacy groups argue the COLA should be tied to a price index specifically for seniors, not the broader CPI-W.