Business

Social Security Payments Are Going Up 8.7% In 2023 After Biggest COLA Increase In 40 Years

Published

2 years ago

October 14, 2022

Social Security Payments Are Going Up 8.7% In 2023 After Biggest COLA Increase In 40 Years

(CTN News) – In 2023, the Social Security Administration is going to increase benefits by 8.7 percent. About 65 million people will get the cost-of-living adjustment (COLA) and over 7 million will get Supplemental Security Income.

Social Security’s monthly benefit check will rise by more than $140 because of the increase.

Benefits increased by 11.2 percent in 1981 after the U.S. suffered a bout of abnormally high inflation, following a 5.9 percent increase last year.

There’s also an increase in wages subject to Security taxes, called the taxable minimum. The Social Security tax will rise from $147,000 in 2022 to $160,200 in 2023. It’ll take effect in January. In the coming year, the tax rate will stay at 6.2 percent.

Due to rising inflation in 2022, the jump in benefits is good news for retirees and people who rely on Social Security. The rise in prices on everyday goods has hit those who rely on these benefits hard.

While the increased checks will benefit seniors, the higher taxable minimum means higher-earning Americans could pay more in taxes.

You’ll get your exact new Social benefit amount in December, and you can also check your account on my Social Security. With the latest COLA, benefits should jump nicely.

COLA boost compared to recent increases

In September 2022, the average Security check was $1,547.87. The average retired worker got $1,673.88.

What’s the new average payment? CPI-W is the Consumer Price Index for urban wage earners and clerical workers. In 2023, those figures will rise to about $1,683 and $1,820.

You’d have to go back to 1981 to find a bigger increase than this year’s. Social Security doesn’t announce benefits decreases. As in 2010 and 2015, it doesn’t announce an increase.

The bottom line

Despite this year’s COLA, Social Security recipients have had to deal with soaring prices to get it.

If you’re on the verge of claiming your Social Security, you might want to think about when to file. By claiming at the right time, you could earn tens of thousands more.