This week, the Social Security Administration announced the most significant disbursement increase to the program in decades.
Since 1975, the SSA has annually introduced the Cost of Living Adjustment (COLA) after analyzing inflation to determine how much more beneficiaries need to be raised to help them keep up with the cost of goods.
COLA 2023: Payment Increase For Seniors, Other Beneficiaries
The latest COLA is a record rise of 8.7%, given the rampant inflation rate that has hit Americans throughout the year.
The last time Social Security saw an increase of this kind was in 1981 when the SSA announced a COLA of 11.2%.
The news of the 2023 increase is that as prices continue to rise, many seniors and other social security beneficiaries (about 70 million ) provide peace of mind.
According to the latest consumer price index report (released on October 13), compared to this time last year, food costs increased by 11.2%; utility bills such as electricity and gas increased by 19.8%, and housing costs increased by 19.8%. Expenses increased by 6,6. %.
If payments increase in 2023, the 8.7% increase equates to an average of $144 a month in additional benefits for individuals and an additional $240 for couples applying together. But the biggest question on many people’s minds is:
When will these increases be reflected in my monthly payment?
The answer to this question depends on the type of payment you receive. The new payouts will start in January 2023 for everyone who receives Social Security benefits.
Read more: Social Security: Why COLA increase is not good news for all beneficiaries.
Other Social Security Payments
If you’re receiving Supplemental Security Income (SSI), your new payments will begin on December 30, 2022. Some beneficiaries receive both types; their payments are also made according to these dates, and the SSI is slightly higher than Social Security.
Another rarity of COLA 2023, in addition to its record increase, is that Medicare Part B premium cuts will fully increase beneficiaries next year.
Previously, COLA was offset by higher Medicare premiums for medical services provided by doctors and outpatient hospitals.
In a news release announcing the COLA announcement, Commissioner Kiroro Kijakazi of the SSA said, “By 2023, Medicare premiums will drop and benefits will increase, giving older people more room to feel secure and relaxed.
Read more: Social Security payments increase: When to expect extra $200 benefits?
