The greatest COLA in more than 40 years will be given to Social Security recipients in 2023 when their benefits would increase by 8.7%. Most retirees will enjoy an average rise of $146 per month as a result of the move, although it will take a few more days before recipients start receiving the new checks.
The benefits for December 2022 will be subject to the COLA rise, which will be reflected in checks issued in January 2023. Social Security benefits are distributed based on birth dates on a rolling basis: those born on the first through the tenth of the month receive benefits on the second Wednesday, those born on the eleventh through the twentieth, and those born on the twenty-first through the thirty-first on the 4th Wednesday. The first checks for the additional amount will therefore be issued on January 11, January 18, and January 25, respectively.
#BREAKING! About 70 million Americans will get a 8.7% increase in monthly #SocialSecurity benefits and #SSI payments in 2023. Check our blog for more information: https://t.co/01HEEzrljy #COLA #2023COLA pic.twitter.com/zPXqNTPaeq
— Social Security (@SocialSecurity) October 13, 2022
What Is Consumer Price Index?
The Consumer Price Index, which displays the year over year rise in prices for products & services for July, August, and September, is used to calculate COLA increments.
The increase in 2023 will be the biggest one time increase since benefits rose 11.2% in 1981. It will also be a significant increase over the 5.9% increase that was implemented this year.
View the COLA notification online in your own Social Security profile to find out what the rise will mean for you. Online at www.ssa.gov/myaccount, users can create or view personal My Social Security accounts. Early in December, beneficiaries will also receive a letter informing them of their revised benefit amount.
Benefits For Retirees
Comparing the last few months of the year, retirees may have a little more space in their budgets in 2023, but even if you outpace the average $147 gain, your purchasing power won’t alter significantly.
Your checks’ value should not grow as a result of the COLA; rather, it should be kept constant over time. And some contend that even in that regard, they fall short.
As per the Senior Citizens League, Social Security has currently lost 40% of its purchasing power since 2000. A COLA of 8.7% will ease some of the current suffering seniors have experienced as a result of high prices, but this larger, more concerning trend will likely persist over time reports AL.
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