The Social Security Administration said Thursday it will be increasing Social Security and Supplemental Security Income benefits for approximately 70 million Americans by 8.7% in 2023 as its annual cost of living adjustment as the U.S. deals with inflation.
On average, Social Security benefits will increase by more than $140 per month starting in January, marking the largest increase in 40 years.
The 8.7% COLA will start with benefits payable to more than 65 million Social Security beneficiaries in January. Increased payments to more than 7 million SSI beneficiaries will begin Dec. 30, 2022. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Labor Department's Bureau of Labor Statistics. On Thursday, the BLS announced that the Consumer Price Index for All Urban Consumers rose 0.4% in September on a seasonally adjusted basis after rising 0.1% in August. Over the last 12 months, the all items index increased 8.2% before the seasonal adjustment.
Some other adjustments that take effect in January of each year will be based on the increase in average wages, the SSA noted. Based on that increase, the maximum amount of earnings subject to the Social Security tax (that is, the taxable maximum) will increase to $160,200 from $147,000.
"Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room," SSA acting commissioner Kilolo Kijakazi said in a statement. "This year's substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned."
Social Security and SSI beneficiaries are usually notified by mail beginning in early December about their new benefit amount. The fastest way to find out their new benefit amount is to access their personal
