Record-high benefits increase to begin in January
SOCIAL SECURITY
Millions of Social Security recipients will get an 8.7% increase in their benefits in 2023, a historic increase but a gain that will be partly offset by inflation. The cost-of-living adjustment (COLA) is the largest in more than 40 year. It means the average recipient will receive more than $140 extra every month beginning in January, the Social Security Administration announced on Oct. 13. The Social Security COLA was established to help seniors and other recipients manage the higher cost of food, fuel and other goods and services. How well it does depends on inflation levels moving forward, according to news reports.
The Consumer Price Index rose 0.4% in September and is up 8.2% for the past 12 months.
The Social Security Administration said the estimated average monthly Social Security benefit for all retired workers will be $1,827 starting in January.
The boost in Social Security benefits will be coupled with a 3% drop in Medicare Part B premiums, meaning retirees will get the full impact of Social Security increase. Several government indexes show that inflation hits older Americans harder than the rest of the population. Medical costs are a big part of the burden. About 70 million people, including retirees, disabled people and children, receive Social Security benefits. This will be the biggest increase in benefits that baby boomers, those born between 1946-1964, have ever seen.
The last time a COLA was higher was in 1981, at 11.2%.
