Will There Be a 2023 COLA Increase? MASSIVE 8.9% Social Security Increase Could Be Coming!

FOR THE VETERAN OF THE VETERAN SHARE OF THE DAY

In this post, we’ll answer the question: “Will there be a 2023 Social Security Increase?”

While it’s still too early to know for sure, VA Claims Insider’s revised estimate (as of May 11, 2022) is a 2023 COLA increase of 8.9%.

Okay, let’s explore how we got to the revised number.

With soaring inflation in the U.S. economy, the Federal Reserve plans to institute a series of 6 rate hikes this year (likely a quarter to half point each), which will increase the federal funds rate to 1.9% by year end, slowing consumer spending and fighting inflation.

“The Federal Reserve aims to keep inflation around 2% each year. It’s primary mechanism to do so is to expand or contract the U.S. economy through interest rates. Reducing interest rates acts as a gas pedal while increasing interest rates acts as a brake. Right now, the Fed needs to get inflation under control, and the best way to do that is to shrink the economy and reduce consumer spending on goods and service. Thus, it’s time to pump the brake.”
Brian Reese – VA Benefits Expert & Author

Overall, the fed rate hikes are too little too late in our opinion, and thus, with soaring inflation in the economy, we estimate a massive 8.9% 2023 COLA increase.

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