Social Security update: Largest benefit boost in more than 40 years to take effect in just days
Asher Notheis
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The highest boost to Social Security and Supplemental Security Income benefits will be enacted by the end of December.
The cost-of-living adjustment will increase the monthly benefits that Social Security and SSI recipients receive by 8.7%, the largest increase since 1981. The increased payments will begin for more than 7 million SSI beneficiaries on Dec. 30 and will start for over 65 million Social Security recipients come January 2023, according to the Social Security Administration.
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COLAs are intended to make sure Social Security and SSI benefits are not eroded by inflation as time progresses. Congress enacted the COLA provision as part of the 1972 Social Security Amendments, allowing for automatic annual payment boosts to begin in 1975.
The highest COLA to be enacted under the SSA was in July 1980, when beneficiary payments increased by 14.3%. The only years when the COLA was 0% were 2010, 2011, and 2016.
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The increase in benefits will give SSI recipients $914 on Dec. 30 as their January 2023 payment. On Dec. 1, SSI recipients were given a payment of $841, with Dec. 30’s payment being higher thanks to the COLA.
This cost-of-living increase will also be reflected for couples and essential persons who receive SSI benefits. Eligible couples will have their monthly benefits increased next year from $1,261 to $1,371, while essential persons, meaning people who live with recipients of SSI and provide necessary care, will have their monthly benefits increased from $421 to $458 in 2023.