The American Institute for Economic Research, a private think tank, estimates Social Security checks will increase between 1.5% and 1.7% in 2013.
The Labor Department will release its September inflation reading on Oct. 16, which is the final of 12 readings used to calculate the cost of living adjustment made annually to benefits. The Social Security Administration will announce the 2013 benefit increase at that time. Benefits increased by 3.6% in 2012, when inflation was higher.
Steven Cunningham, director of research and education for AIER, said that the increase will not be enough to cover the actual rise in costs faced by many seniors, who receive the overwhelming majority of Social Security benefits.
