Social Security beneficiaries will receive an 8.7% boost in earnings in 2023. It is the most significant increase in 40 years, despite record-high inflation. The modification was disclosed on Thursday by the Social Security Administration. From January, benefits will increase by an average of more than $140 a month.
The usual Social Security senior benefit will rise from $1681 in 2022 to $1827 in 2023, an increase of $146 per month. A bipartisan senior organization, the Senior Citizens League, predicted last month that the Cost-of-Living Adjustment) maybe 8.7% in 2019. The beneficiaries’ 5.9% increase in 2022, the biggest in four decades, was topped by the verified 8.7% rise in benefits.
Annual Cost of Living Increases for Social Welfare
The cost of living modification last increased by 11.2% in 1981. Beneficiaries have battled with rising prices this year, so next year’s record boost will be welcome news.
The Potential Size of Your Social Security Benefit
Beginning in January, beneficiaries anticipate seeing the 2023 COLA in their benefit checks. But beginning in December, you could be able to see notices from the SSA online that detail the precise amount of your checks for the following year. Taxes and Medicare Part B premiums might influence the number of your benefit checks. Next year, the average Medicare Part B premium will drop by $5.20 to $164.90 from $170.10. Those contributions are frequently taken out of recipients’ Social Security benefit checks immediately. About 70 million beneficiaries of Social Security and Supplemental Security Income are affected by the COLA.
The CPI-W increase from the third quarter of the previous year to the third quarter of the current year is used by the SSA to compute the yearly COLA.
