Inflation is hitting hard for many American families and millions of retirees on a fixed income get a little bit of good news today.

Social Security recipients will be getting a cost of living increase next year. Folks who get a social security check will be getting a whopping 8.7% increase in 2023. This is the biggest bump in benefits in 40 years.

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Why Is this Such a Large Increase?

This increase is the result of 8% inflation that is impacting the cost of groceries, gas and almost all other goods we have to buy each month. Whether or not this increase will help the retirees keep their head above water will depend on what happens with inflation next year.

Is this announcement today linked to the midterm elections which are just a few weeks away? Some are skeptical about the timing. Why has the President waited so long to address inflation for those on a fixed income?

How Many People Will This Impact?

Close to 70 million people get Social Security benefits. This includes millions on disability. This big announcement is the largest increase ever seen by baby boomers who are now starting to retire. These folks were born between 1946 and 1964.

How much of this money will retirees be able to hold on to? Most say it will likely be gobbled up by inflation. Health care costs are also going up and that is eating into the cash folks have saved up for their golden years.

But the younger generation does have concerns that the Social Security system will run out of money by the time they try to retire and there are worries that this large increase could further compromise the entire system.

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