Social Security beneficiaries will receive an 8.7% boost to their benefits in 2023, the Social Security Administration announced this month.
The annual cost-of-living adjustment is the largest in four decades, topping a 5.9% increase in 2022. It applies to both Social Security benefits and Supplemental Security Income (SSI) benefits.
2023 Social Security Cost-of-Living Adjustment and Other Social Security Changes
Each year, benefits paid to seniors and others who receive Social Security is adjusted for inflation. For 2023, the cost-of-living adjustment, or COLA, is based on the increase in the Consumer Price Index from the third quarter of 2021 through the third quarter of 2022.
Given that the U.S. has been battling rampant inflation, the latest adjustment is sizable. It entitles Social Security and Supplemental Security Income (SSI) beneficiaries to an 8.7% increase in their benefits for 2023. On average, this amounts to an extra $140 per month beginning in January.
Here are the estimated average monthly Social Security benefits payable after the 8.7% COLA:
- All Retired Workers
- Before: $1,681
- After: $1,827
- Aged Couple, Both Receiving Benefits
- Before: $2,734
- After: $2,972
- Widowed Mother and Two Children
- Before: $3,238
- After: $3,520
- Aged Widow(er) Alone
- Before: $1,567
- After: $1,704
- Disabled Worker, Spouse and One or More Children
- Before: $2,407
- After: $2,616
- All Disabled Workers
- Before: $1,364
- After: $1,483
The 8.7% COLA will begin with benefits payable to over 65 million Social Security beneficiaries in January 2023. Increased payments to over 7 million SSI beneficiaries will begin on December 30, 2022.
The adjustment also accompanies other changes to Social Security in 2023, included new tax rates, disability thresholds, maximum benefits for full retirement age, and more.
Have Questions About Social Security Disability or SSI?
Robert Peirce & Associates, P.C. helps people across Pennsylvania, Eastern Ohio, and West Virginia navigate the Social Security system to obtain needed Social Security Disability Insurance (SSDI) and/or Supplemental Security Income (SSI) benefits, and appeal denials. Our attorneys are available to evaluate your eligibility and discuss how we may be able to assist you.
To speak with a lawyer, call (844) 383-0565 or contact us online.