The more than 65 million recipients of Social Security will learn just how much their monthly income will increase in 2023 on October 13, 2022, at 8:00 a.m. ET.
The cost-of-living adjustment (COLA) announcement is the most significant news of the year for the majority of the 48.1 million retired employees receiving a Social Security check.
The easiest approach to understand Social Security's COLA is to see it as a means for the program to take into account inflation, or the growing cost of goods and services.
Given that so many seniors rely on Social Security income to get by during retirement, it makes reasonable for their monthly distribution to rise in line with inflation
so they can continue to buy the same assortment of products and services. The "raise" that accounts for inflation is known as a COLA.
The word "raise" is surrounded by quotation marks to indicate that it isn't a conventional rise like the kind you may receive from your job.