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2023 Social Security Benefit Increase

In 2023, approximately 70 million Americans will see an 8.7% increase in their Social Security Benefits and Supplemental Security Income (SSI) payments. According to the Social Security Administration, on average, retired workers currently collect $1,681 per month in Social Security payments, or roughly $20,172 per year. The 8.7% adjustment will add about $146 per month to those payments or $1,752 for the year.

This increase is a cost-of-living adjustment, COLA for short, to recipients’ monthly benefits. High inflation leads to a higher cost-of-living. The rise in cost-of-living is measured by the Department of Labor’s Consumer Price Index (CPI). This COLA is to help offset the higher costs associated with this period of high inflation.

The acting Social Security Commissioner said, “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”. 2023 will be the first year in more than a decade that Medicare premiums are not rising, and this 8.7% increase is the largest since the 11.2% adjustment in 1981. This is a good thing for those receiving benefits as it will provide the relief needed to help recipients combat the recent inflation.

The Social Security Administration will be mailing notices throughout the month of December to retirees receiving Social Security benefits, disability beneficiaries, SSI recipients, and representative payees. If you want to know your updated benefit amount sooner, you can securely obtain your Social Security COLA notice online in the Message Center of your personal Social Security account beginning in early December.

 The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate of complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation.