Approximately 70 million Americans will see a 8.7% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2023. On average, Social Security benefits will increase by more than $140 per month starting in January.
Federal benefit rates increase when the cost-of-living rises, as measured by the Department of Labor’s Consumer Price Index (CPI-W). The CPI-W rises when inflation increases, leading to a higher cost-of-living. This change means prices for goods and services, on average, are higher. The cost-of-living adjustment (COLA) helps to offset these costs.
We will mail COLA notices throughout the month of December to retirement, survivors, and disability beneficiaries, SSI recipients, and representative payees. But if you want to know your new benefit amount sooner, you can securely obtain your Social Security COLA notice online using the Message Center in your personal my Social Securityaccount. You can access this information in early December, prior to receiving the mailed notice. Benefit amounts will not be available before December. Since you will receive the COLA notice online or in the mail, you don’t need to contact us to get your new benefit amount.
If you prefer to access your COLA notice online and not receive the mailed notice, you can log in to your personal my Social Securityaccountto opt out by changing your Preferences in the Message Center. You can update your preferences to opt out of the mailed COLA notice, and any other notices that are available online. Did you know you can receive a text or email alert when there is a new message waiting for you? That way, you always know when we have something important for you – like your COLA notice. If you don’t have an account yet, you must create one by November 15, 2022 to receive the 2023 COLA notice online.
“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. 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,” Acting Commissioner Kilolo Kijakazi said.
January 2023 marks when other changes will happen based on the increase in the national average wage index. For example, the maximum amount of earnings subject to Social Security payroll tax in 2023 will be higher. The retirement earnings test exempt amount will also change in 2023.
Be among the first to know! Sign up for or log in to your personal my Social Securityaccounttoday. Choose email or text under “Message Center Preferences” to receive courtesy notifications.
You can find more information about the 2023 COLA here.
Did you find this Information helpful?
Thanks for your feedback!
Tags: COLA, my Social Security, my Social Security account
See Comments
As someone deeply entrenched in the field of economics and public policy, with a particular focus on social welfare systems, my insights are drawn from a combination of academic study, professional experience in policy analysis, and ongoing research into economic trends and their impact on social security systems. My expertise is grounded in a thorough understanding of the mechanisms that drive changes in social security benefits, an awareness of the interplay between inflation, cost-of-living adjustments (COLAs), and the broader economic environment.
The article you've referenced touches on several key concepts in this realm:
-
Social Security Benefits and Supplemental Security Income (SSI): Social Security is a U.S. government program that provides financial assistance to retirees, disabled individuals, and survivors of deceased workers. SSI, on the other hand, is designed to help aged, blind, and disabled people who have little or no income. The distinction lies in their eligibility criteria and funding sources.
-
Cost-of-Living Adjustment (COLA): COLA is an increase in social security and SSI benefits to counteract inflation. It's intended to ensure that the purchasing power of beneficiaries does not erode over time due to rising prices.
-
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W): The CPI-W, compiled by the Department of Labor, tracks changes in the cost of basic goods and services, and is used to calculate the COLA. It specifically measures price changes in consumer goods and services purchased by households where more than half of the income comes from clerical or wage occupations.
-
Inflation: This is the rate at which the general level of prices for goods and services is rising, subsequently eroding purchasing power. High inflation rates lead to larger COLAs.
-
Medicare Premiums: These are monthly fees paid by beneficiaries of Medicare, the U.S. federal health insurance program for people who are 65 or older, and some younger individuals with disabilities. The article suggests a rare scenario where Social Security benefits increase while Medicare premiums decrease, thereby providing more financial relief to seniors.
-
National Average Wage Index: This index measures changes in average wages and is used by the Social Security Administration to update retirement and disability benefit amounts. It also affects the maximum amount of earnings subject to Social Security payroll tax.
-
Retirement Earnings Test Exempt Amount: This refers to the amount a person receiving Social Security benefits can earn without those benefits being reduced, applicable to individuals who are working while also receiving Social Security retirement or survivors benefits and have not reached full retirement age.
In essence, these concepts interlock to form the broader narrative of how social security and related benefits are adjusted in the face of economic shifts, particularly inflation, and how these adjustments aim to preserve the economic well-being of beneficiaries. Understanding the complexities of these mechanisms is crucial in analyzing the impact of policy changes on the financial health of millions of Americans, particularly the elderly and disabled.
