The news of the Social Security Cost-of-Living Adjustment (COLA) for 2023 has been released.

Like most news in matters of money and finance, the news is a mix of good and bad. The long-awaited release of this news shows the COLA will be 8.7 percent. This represents a historic high not seen in decades.

While the immediate reaction is to celebrate, we here at NORA try to see things from every side of the issue. While seniors deserve this increase, is it enough to make a big difference in today’s economy?

The Record Increase is a Good Sign, But Not a Perfect Result

As we’ve covered, this topic has been of high interest to retirees all summer and into the fall. Though the boost won’t be here until next year, many seniors are already factoring it into their financials.

The fact that the number is a 40-year high is a plus. The same can be said given that it’s up from the 5.9 percent increase from last year.

Some outlets predicted the number would hover around 9 percent, but this was back in spring. Inflation has worsened since then, leading many to hope that the number would climb to the double digits. While this wasn’t the case, the boost could still make a difference for retirees.

The Social Security COLA for 2023 Isn’t the End of the Mission

While seniors can celebrate this increase, we can also look at it objectively. This boost is likely far less than seniors deserve. Even though it may help, it’s not the massive increase it would be if inflation wasn’t a factor.

What seniors can do in this case is remember that the COLA cause is continuous. This number should set the stage for a larger one next year. It’s never too early to start thinking about this increase, and we’ll keep covering this important topic and its impact on retirees.

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