Social Security beneficiaries are set to receive a bit more money from the monthly benefits that they enjoy thanks to a cost of living adjustment made by the Social Security Administration.
To keep up with inflation, the SSA makes an adjustment every year to the amount of money that Social Security recipients receive from their monthly benefits. This year’s adjustment will be 8.7%, making payments to Social Security recipients 8.7% higher than what they have been receiving this year, according to CNBC.
“It’s good for people on Social Security,” said Jim Blair, a former Social Security administrator. “It’s not so good for the economy with inflation.”
The average retirement benefits in 2022 were $1,681, and will go up by $146 to $1,827 starting next year in response to this COLA. The amount of the average disability benefit will also go up next year thanks to the COLA, going from $1,364 to $1,483 next year, a $119 increase
Supplemental Security Income payments will also benefit from this increase in 2023, with January’s payment being made in advance on Dec. 30. The next SSI payment will be $914, up by 8.7% from the $841 that recipients received once a month in 2022.
Not all benefits will experience an increase, however, as the standard Medicare Part B premium payments, used to cover non-hospital treatments like visits to a doctor, will go down 3% next year. The payments will decrease to $164.90, a slight decrease from the $170.10 that recipients received in 2022.
The 2023 COLA will mark the highest COLA in over 40 years, when the SSA adjusted the benefits that recipients receive by 11.2% in 1981. The highest COLA made was made a year prior in 1980 at 14.3%, and the only years when there were no COLA made were 2010, 2011, and 2016, according to the SSA.