The 2023 COLA For Federal Retirees
According to the Bureau of Labor Statistics (BLS), the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) grew 8.9% over the past 12 months to an index level of 284.575 (1982-84=100).
Before seasonal adjustment, the index climbed 0.5% in April.
Estimated 2023 COLA Trend (FERS / CSRS / Social Security)
The calculation of the 2023 COLA estimate
The Cost-of-Living Adjustment (COLA) for each year is calculated by comparing the change in the CPI-W from year to year using the average of the third-quarter months of July, August, and September. For the third quarter of 2021, the average CPI-W was 268.421.
The amount of a COLA is calculated by the percentage change in the base quarter price index from the prior year to the year the COLA is to take effect (the final value is adjusted to the closest 1/10th of 1%).
The trend toward a 2023 COLA as of April 2022 is: (284.575 – 268.421) / 268.421 x 100 = 6.018 (adjusted to the closest 1/10th of 1% = 6%)
The May Consumer Price Index (CPI) is set to be issued on June 10, 2022.
The Social Security Administration (SSA) will publish the official 2023 COLA in mid-October 2022. The SSA will compute the percentage change in average prices between the third quarter of this year (ending September 30) and the prior year’s third quarter.
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Bill and his associates of Faith Financial Advisors have over 30 years’ experience in the financial services industry.
He has been a Federal Employee (FERS) independent advocate and an affiliate of PSRE, Public Sector Retirement Educators, a Federal Contractor and Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.
Bill will help you understand the FERS Benefits and TSP withdrawal options in detail while also helping to guide you in your Social Security choices.
Our primary goal is to guide you into your ment with no regrets; safe, predictable, stable and for life using forward thinking ideas and concepts.
> Financial Services consultant since 1984
> FERS independent advocate and an affiliate of Public Sector Retirement Educators (PSRE), a Federal Contractor and Registered Vendors to the
> Affiliate of TSP Withdrawal Consultants
> His goal is to guide individuals into retirement with safe, and predictable choices for stability using forward thinking ideas and concepts.