NORFOLK, Va. — Millions of Americans who receive Social Security and SSI benefits will see extra money in their wallet next year.
On Thursday, the Social Security Administration announced the biggest raise in decades. Starting January 2023, the cost of living adjustment, or COLA, will see an 8.7% increase.
“This is the biggest increase that we’ve seen in the last 40 years," said Dr. Vinod Agarwal, an economics professor at Old Dominion University.
In a report, the Social Security Administration said that means about an extra $140 in their pockets per month.
More than 1.6 million Virginians rely on Social Security benefits, including seniors and disabled workers, according to the administration
The raise is to help account for inflation, as prices remain high across the country.
Also released Thursday — the nation’s September consumer price report. The Labor Department said prices rose 8.2% from the same time last year.
The number is slightly down from August, but still not a good feeling for everyday people feeling the strain on their wallets.
“If they cannot control inflation, they will have no choice but to keep on increasing the rates," said Agarwal, referring to actions by the Fed.
Some good news: gas prices nationwide dipped from last month.
But food prices went up, again, according to the Labor Department. It’s not the result some hoped for.
“Unfortunately, the numbers that came out today and came out yesterday, tell us you can expect some more increasing interest rates in the next few months," said Agarwal.
Nearly 66 million Americans receive Social Security benefits per month.
Agarwal said he worries most about people living paycheck-to-paycheck or on fixed incomes, which is why the Social Security boost is welcomed news.
“And this could not have come at a better time for these guys," he said.