The SSA said in October that its COLA for the upcoming year will be 8.7%, raising the average payment by $144. Before the new year, SSI recipients will receive higher benefits. Following the largest COLA in more than 40 years, millions of Americans will soon receive higher Social Security benefits. The Social Security Administration stated in October that benefit increases for SSI will total 8.7% in 2023.
Beneficiaries Of Social Security COLA
Social Security benefits are received by around 70 million individuals including children, the disabled, and retirees. Over 65 million Social Security users will start receiving COLA-adjusted payments in January, and more than 7 million SSI recipients will start receiving enhanced payments on December 30. According to the SSA, the benefits increase will result in an overall Social Security recipient receiving more than $140 extra each month starting in January.
Rise In Social Security Benefits
As stated in an agency information sheet, the expected monthly average Social Security income for all retirees would rise between $1,681 and $1,827 starting in January.
The highest federal SSI monthly payout to an individual will rise from $841 to $941, and for a couple, it would rise from $1,261 to $1,371. Inflation hit a 40-year high, the 2023 COLA is the largest since 1981 (11.2 percent). The Consumer Price Index for Urban Wage Earners & Clerical Workers is used by the Social Security Administration to determine the figure.
The increase in Social Security income coincides with a rare 3 percent reduction in Part B of Medicare monthly premiums. Acting SSA commissioner Kilolo Kijakazi noted that the significant Social Security COLA this year is the first time in more than ten years that Medicare premiums are not increasing and demonstrates our ability to support older Americans who depend on the benefits they have earned.
The maximum income subject to Social Security tax may likewise rise to $160,200 at the same time. In 2022, the cap was $147,000, while in 2021, it was $142,800 reports Newsweek.
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