The largest payout boost for the program in decades was announced this week by the Social Security Administration. Since 1975, the SSA has implemented a COLA each year after examining inflation rates to determine how much to raise benefit funds to help beneficiaries keep up with the cost of products.
How Much Will The Benefits Increase
The payment rise in 2023 will result in average monthly benefits increase of $144 for singles and $240 for married filing jointly, or 8.7% higher. The mode of funding received will determine the response to that inquiry.
The new payment level for anybody collecting Social Security benefits will begin in January 2023, as per the SSA. The revised payment amounts for recipients of Supplemental Security Income (SSI) will start on December 30, 2022.
Some recipients receive both forms of benefits, and they will also receive payments on these dates, with SSI payments increasing somewhat before Social Security benefits do.
2023 COLA Might Be Good News For The Retirees
Taking into consideration the extreme levels of inflation which have been impacting Americans all year, the most recent COLA represents a record 8.7% increase.
The very last instance Social Security experienced this kind of growth was in 1981 when the SSA declared a COLA of 11.2%.
The revelation of the 2023 payout rise is welcome news for the many retirees and other Social Security recipients (about 70 million individuals, according to the SSA), who have been finding it difficult to make ends meet as prices continue to rise.
The cost of food has increased by 11.2% compared to this time last year, while commodities like electricity and piped gas have increased by 19.8% and the price of housing has increased by 6.6%, according to the most recent CPI report (published on October 13).
In addition to being a record rise, the COLA for 2023 is noteworthy in that recipients will receive the whole increase because Medicare Part B premiums will be lower the following year.
Formerly, Medicare premium rises that cover doctors, as well as public hospital medical services, would balance the COLA reports Yahoo Finance.
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