In a year that has brought difficult economic circumstances in more than one area, there is a silver lining for those claiming social security benefits. After much speculation, it was formally announced that social security recipients are getting a cost-of-living increase of 8.7%.
This increase, one of the largest ever, goes into effect in December with the first payment being made in January of 2023. This marks the biggest increase since 1981.
Though this increase will be beneficial for recipients, it comes on the back of a year that has seen record inflation, rapidly declining equity markets, and unusually volatile fixed income markets.
Though no one can predict the future, many investors are concerned that 2023 may bring more uncertainty and volatility. For retirees, the social security increases will help reduce the burden of higher prices at the gas pump and the grocery store, as well as increases in other living expenses such as healthcare and insurance.
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