Social Security Administration announced that the COLA will increase Social Security benefits by 8.7% beginning January 2023 — the largest since 1981.
Approximately 70 million Americans will see a 8.7% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2023. On average, Social Security benefits will increase by more than $140 per month starting in January 2023.
A COLA at the this level is almost unprecedented. There were only three other times since the start of automatic inflation adjustments that COLAs were higher (1979-1981)
The Social Security Administration (SSA) will mail COLA notices throughout the month of December to retirement, survivors, and disability beneficiaries, SSI recipients, and representative payees.
But if you want to know your new benefit amount as soon as possible, you can securely obtain your Social Security COLA notice online using the Message Center in your personal my Social Security account. Your personal my Social Security account gives you immediate access to important information and tools.
According to The Motley Fool, December 2022, the Social Security Administration estimates monthly payouts for an assortment of beneficiaries will be as follows:
- Average retired worker: $1,681/month
- Average worker with disabilities: $1,364/month
- Average aged couple, both receiving benefits: $2,734/month
- Average widowed mother and two children: $3,238/month
- Average aged widow(er) with no children: $1,567/month
Here’s what these same monthly Social Security checks will look like once the 2023 COLA takes effect in January:
- Average retired worker: $1,827 ($146/month increase)
- Average worker with disabilities: $1,483 ($119/month increase)
- Average aged couple, both receiving benefits: $2,972 ($238/month increase)
- Average widowed mother and two children: $3,520 ($282/month increase)
- Average aged widow(er) with no children: $1,704 ($137/month increase)
For a majority of recipients, a triple-digit monthly “raise” is on the way, explains The Motley Fool.
January 2023 marks when other changes will happen based on the increase in the national average wage index. For example, the maximum amount of earnings subject to Social Security payroll tax in 2023 will be higher. The retirement earnings test exempt amount will also change in 2023.
There are few, if any, federal agencies that impact the lives of the American people to the extent that the Social Security Administration (SSA) does. Millions count on SSA—retirees who worked hard their whole lives, people who are no longer able to work due to disability, and many more.
SSA’s programs touch the lives of almost every person in the nation. SSA employees work diligently to ensure that they receive critical benefits and other services, and it is my honor and privilege to lead them in their efforts.
References:
- https://blog.ssa.gov/social-security-benefits-increase-in-2023/
- https://www.ssa.gov/news/newsletter/
- https://www.fool.com/retirement/2022/10/18/how-much-social-security-checks-increasing-in-2023/
- https://seniorsleague.org/week-ending-october-15-2022/