Social Security Benefits Cola 2023: In 2023, approximately 70 million Americans will see a boost in their Social Security benefits and Supplemental Security Income (SSI) payments.
This increase will be around 8.7%, which means more money in the pockets of retirees and those receiving SSI. On average, Social Security benefits will rise by over $140 per month starting from January.
Why the Increase?
The increase in federal benefit rates is linked to the rise in the cost of living. This is measured by the Department of Labor’s Consumer Price Index (CPI-W).
When inflation goes up, the CPI-W follows suit, indicating a higher cost of living. With prices for goods and services generally climbing, the cost-of-living adjustment (COLA) steps in to help offset these rising costs.
Getting Your COLA Notice
We’ll be sending out COLA notices throughout December to retirement, survivors, and disability beneficiaries, SSI recipients, and representative payees.
But if you’re eager to know your new benefit amount earlier, you can securely access your Social Security COLA notice online through the Message Center in your personal my Social Security account.
This information will be available in early December, before the mailed notices arrive. You don’t need to contact us to find out your new benefit amount since you’ll get the COLA notice either online or in the mail.
Check out some other new content we’ve published:
TikTok Wrapped 2023: A Look Back at the Year
Manage Your Preferences
If you prefer to go digital and not receive the mailed COLA notice, you can adjust your Preferences in the Message Center of your personal my Social Security account.
Opting out of the mailed notice also applies to other available notices. Did you know you can even get a text or email alert when there’s a new message for you?
This way, you’ll always be in the know, especially when it’s something important like your COLA notice. If you don’t have an account yet, make sure to create one by November 15, 2022, to receive the 2023 COLA notice online.
Good News for Seniors
Acting Commissioner Kilolo Kijakazi highlights that Medicare premiums are decreasing while Social Security benefits are increasing in 2023. This provides more peace of mind and financial relief for seniors.
Notably, this year’s significant Social Security cost-of-living adjustment is accompanied by the first instance in over a decade where Medicare premiums aren’t going up. It demonstrates our commitment to supporting older Americans who rely on these earned benefits.
More Changes Ahead
In January 2023, additional changes were brought about by the increase in the national average wage index. These changes included a higher maximum amount of earnings subject to Social Security payroll tax and adjustments to the retirement earnings test exempt amount.
