The highest boost in Social Security and SSI benefits is scheduled to take effect by the end of December.
The monthly income of Social Security and SSI claimants will increase by 8.7 percent due to the cost-of-living adjustment, the highest increase since 1981.
Social Security Payments Increase
According to the SSA, the enhanced benefits will begin for over 7 million SSI beneficiaries on December 30 and for over 65 million recipients in January 2023.
Moreover, the purpose of cost-of-living adjustments (COLAs) is to counteract the gradual erosion of benefits caused by inflation. The cost-of-living adjustment (COLA) provision was included in the Social Security Amendments of 1972, enabling automatic annual pay raises to begin in 1975.
The SSA, which manages the benefits program, has announced that beginning in January, retirees and other recipients would get a cost-of-living adjustment (COLA) of 8.7 percent.
Read more: SSA, USDA will soon allow SSI beneficiaries to apply for SNAP benefits
SSI Payments
About 70 million Americans receiving Social Security or Supplemental Security Income (SSI) benefits will experience an average increase of $140 per month in their benefit checks beginning in 2023. Retired Americans, people with disabilities, and certain surviving spouses and children all gain from these government programs.
Nonetheless, Medicare premiums are decreasing, which officials pointed out as a positive development that will give retirees greater peace of mind and breathing room in addition to the increased monthly payments.
Additionally, increases in cost-of-living adjustments (COLAs) were 5.9% last year after being raised at a rate of less than 3% annually for about a decade.
While this has had some effect, the Federal Reserve’s efforts to reduce inflation and price pressures by raising interest rates have had even less of an impact.
Read more: Social Security: Why COLA increase is not a good news for all beneficiaries
