The new cost-of-living adjustment of 8.7% in October is expected to increase Social Security payments to beneficiaries’ checks.
Depending on the recipients’ birthdays, the Social Security Administration makes payments on three different Wednesdays each month.
Will There Be Bonus Security Payments?
Your payment will be delivered on the second Wednesday of the month if your birthday is between the first and tenth of the month, and on the third Wednesday of the month if it is between the eleventh and twentieth.
People whose birthdays fall between the 21st and the 31st of the month will get payment on the fourth Wednesday. The SSA’s capacity to pay incentives in December has raised questions. But the concerns are unfounded.
Before the year is over, there won’t be any Social Security bonus payments. It has been misconstrued that one of the two payments that SSI beneficiaries would receive in December will be a Social Security bonus payment.
The Supplemental Security Income payment for January, which will be sent out a few days early, is all that is included in the second deposit.
Read more: Social Security changes to expect in 2023 that might affect your money in positive, negative way
When To Receive SSI Payments?
SSI benefits are typically given out on the first of each month. However, SSI payments are made early or on the following earlier business day if it falls on a weekend or federal holiday when banks are closed.
Prior to this year, SSI participants got two payments in April and September. Additionally, SSI recipients will get two payments in June, September, and December of 2023. Due to the 8.7% COLA, SSI recipients can anticipate a much larger monthly payout in 2023. Since more than 40 years ago, this hike has been the largest.
The maximum federal SSI payments for 2023 are $914 per month for those who qualify. Those who have a qualified spouse will receive $1,371, while an essential person will only receive $458.
The SSI essential person is someone who resides with an SSI beneficiary and provides essential care, according to the SSA. In order to get SSI benefits, an essential person must fulfill the standards. Those who receive Social Security benefits are unsure if the increase will be sufficient to fight inflation.
Inflation will certainly surpass the Social Security COLA in 2023 when it will be at an all-time high. The good news is that there won’t be an increase in Medicare premiums to offset the payout. Some analysts are also concerned that the high COLA for the following year may have an impact on the program’s funding in the years to come.
A larger COLA will cost the program tens of billions of dollars, according to Maya MacGuineas, president of the Committee for a Responsible Federal Budget. According to MacGuineas, if Congress does nothing, it might push the insolvency date forward by a year and would constitute a breach of responsibility.
A high COLA may be balanced out by increases in the average pay, according to Social Security Administration chief actuary Stephen Goss. He claims that they believe the program’s solvency won’t be significantly affected.
Read more: Social Security: Expect both good and bad changes in 2023!