The Social Security Administration (SSA) provided Social Security benefits to over 66 million Americans with disabilities and retirement income in 2022. As inflation and cost of living increased throughout the year, the SSA increased benefits by 8.7%. This boosts the average Social Security check to $1,827 in 2023.
Social Security payments vary based on the beneficiary’s specific circ*mstances, like whether they receive survivor or retirement benefits and how many years they worked and paid into Social Security.
We’ve pulled Social Security payment averages, cost of living updates, and Medicare Part B details to help you manage your finances for the year.
- The average Social Security payment is $1,827
- Social Security benefits are increasing by 8.7% in 2023
- Social Security benefits max out at $3,627 for full retirement age beneficiaries
- Medicare Part B premiums are decreasing in 2023 to premiums at $164.90 and deductibles at $226
Average Social Security Payments Increase With Inflation
The SSA offers cost of living adjustments (COLA) based on inflation to ensure beneficiaries can maintain their living standards. Beneficiaries received an 8.7% increase in their Social Security payments beginning in 2023.
Consumer prices averaged 6.5% higher in 2022 across categories, while food costs increased 10.4% alone. As inflation tends to increase annually, it’s common to see Social Security checks grow to accommodate increasing costs.
| Year | Cost of Living Adjustment⁴ | Average Payment* Estimate |
|---|---|---|
| 2022 | 8.7% | $1,688.35 |
| 2021 | 5.9% | $1,594.28 |
| 2020 | 1.3% | $1,573.82 |
| 2019 | 1.6% | $1,549.04 |
| 2018 | 2.8% | $1,506.85 |
| 2017 | 2.0% | $1,477.30 |
| 2016 | 0.3% | $1,472.88 |
| 2015 | 0.0% | $1,472.88 |
| 2014 | 1.7% | $1,448.26 |
| 2013 | 1.5% | $1,426.86 |
| 2012 | 1.7% | $1,403.01 |
Source:*Historical average payments are estimated based on annual COLA.
While all beneficiaries enjoy COLA increases, the average Social Security check varies between beneficiary groups. Retirees are estimated to receive $147 more a month in 2023, while disability beneficiaries will receive $119 more.
| Beneficiary | Total Payout⁶ | Average Monthly Benefit |
|---|---|---|
| All Beneficiaries | $111,866M | $1,691.53 |
| Retired Workers | $89,214M | $1,828.30 |
| Disabled Workers | $11,222M | $1,483.11 |
| Survivor Beneficiaries | $8,458M | $1,447.44 |
Source:SSA Social Security Benefits, January 2023
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Maximum Social Security Benefits
The amount of Social Security benefits you can receive depends on the age you retire. People who retire at the current retirement age (66) max out at $3,627 in 2023. Retirees can earn more for delaying retirement or less while enjoying early retirement.
| Age | Maximum Benefit⁷ |
|---|---|
| 62 | $2,572 |
| 66 (Retirement Age) | $3,627 |
| 70 | $3,627 |
Your lifetime earnings determine your Social Security payments, and the SSA calculates your average monthly earnings based on the 35 years you earned the most at work. Working longer and at a higher wage can help you reach the maximum Social Security payout.
Americas 18 and older can review their earnings record at SSA.gov.
Minimum Social Security Benefits
A person must have worked at least 1 1 years of coverage as defined by the SSA to receive special minimum benefits. Special minimum benefits are also known as a primary insurance amount (PIA), which provides payments for longtime low-earners.
PIA payments vary based on the years of coverage an individual worked. PIA is also the amount a worker earns at retirement age without early or late retirement considerations.
PIA benefits increase automatically with Social Security increases, and you can track them through the SSA.
| Years of Coverage⁸ | Primary Insurance Amount | Maximum Family Benefit |
|---|---|---|
| 11 | $49.40 | $75.40 |
| 15 | $256.00 | $385.90 |
| 20 | $515.50 | $774.30 |
| 25 | $774.30 | $1,163.30 |
| 30 | $1,033.50 | $1,552.10 |
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How To Supplement Your Social Security Pay
Social Security checks aren’t always enough to make ends meet — even with COLAs. There are several ways Americans can cover their expenses if their benefits don’t stretch as far as they need them.
Planning for retirement and investing in 401(k) accounts, individual retirement accounts (IRAs), and annuities offer tax-advantaged savings opportunities to cover retirement costs. These are especially helpful if you want to retire early or guarantee you’ll have income for as long as you live.
Some workers choose to delay retirement until age 70 when they’ll earn retirement credits offering up to 8% more income in 12 months. This boosts your monthly earnings to help you get by but may result in fewer retirement earnings, depending on your life expectancy.
Workers who aren’t willing to delay retirement but also want to continue working may still receive their maximum Social Security benefits in addition to a regular paycheck. Americans in full retirement can earn up to $21,240 in 2023¹⁰ before losing Social Security benefits.
Medicare Part B Premiums and Social Security
The SSA doesn’t just determine Social Security COLA but also Medicare Part B premiums, deductibles, and coinsurance rates annually.
In 2022, the SSA increased Medicare Part B expenses to fund new drugs and spent less than projected. The SSA uses those savings to decrease Medicare Part B costs in 2023. This includes decreased monthly premiums and lower annual deductibles for enrollees.
| 2023 | 2022 | |
|---|---|---|
| Monthly Premiums | $164.90 | $170.10 |
| Annual Deductible | $226 | $233 |
Medicare Part B provides medical insurance to cover outpatient services, home health care, durable medical equipment like wheelchairs, and preventative services.
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Social Security Provides Inflation Relief
The SSA determines benefit increases annually based on cost-of-living and inflation fluctuations. In 2023, the average Social Security check increased by 8.7% to $1,688.35.
Medicare Part B expenses are also affected by inflation and have decreased after federal spending came in under budget in 2022. Learn more about Medicare Part B coverage and costs.
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Last Modified: October 20, 2023
Christian SimmonsFinancial Writer
Christian Simmons is a writer for RetireGuide and a member of the Association for Financial Counseling & Planning Education (AFCPE®). He covers Medicare and important retirement topics for RetireGuide. His unique blend of business and writing backgrounds has equipped him to understand complex retirement topics and convey that information in an informed and easily digestible way.
- Certified educator in personal finance
- Bachelor’s degree in journalism from the University of Central Florida Burnett Honors College
- Master’s degree in integrated business from the University of Central Florida
Edited By
Lamia ChowdhuryFinancial Editor
15 Cited Research Articles
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