American seniors are getting a pay raise.
The cost of living adjustment for social security checks (COLA) is increasing by 5.9%, the Social Security Administration said Wednesday. The average monthly benefit will increase by an estimation $92 per month, bringing the average monthly amount to $1,657.
The 5.9% increase is the largest cost of living adjustment since 1982. It comes amid increasing inflation. The labor department reported Wednesday that the prices consumers pay for goods rose again in September, up 5.4%. This is the largest annual gain since 2008.
While the 5.9% increase is certainly welcomed, whether or not retirees feel the benefit from it largely depends on how much inflation continues to rise in the coming months. In other words, if inflation gains more momentum, the 5.9% increase could be less meaningful in real terms.