In 2023, Social Security recipients are going to see the highest boost in benefits in almost 40 years.
This large increase will help those that utilize Social Security to bolster their wallets after the brutal inflation rates over the past year.
We’ll tell you everything you need to know about the 2023 COLA estimate for social security benefits in this article.
Keep reading to learn more.
What Is COLA?
Every year, the value of the dollar decreases a certain amount because of inflation. This means that the purchasing power of a dollar can buy less than what it could a few years ago.
COLA is the cost-of-living-adjustment that was enacted to battle against the effects of rising prices or inflation. This is used for those that use Social Security and Supplemental Security Income (SSI).
It is usually calculated equally to the percentage increase in the Consumer Price Index. This measures the average price of goods to measure inflationary rates.
What Is the 2023 COLA Estimate?
This year, inflation saw its biggest increase in four decades. Everyone was hit hard — the prices of everyday goods like groceries, gas, and supplies rose significantly.
Thankfully, the Social Security Administration always adjusts for these inflationary rates. The COLA 2023 increase will be 8.7%.
These rates will begin to take place for December benefits, but most recipients will not get them until the first month of 2023. The average amount for social security checks will rise more than $140, from $1,681 to $1,827.
Thousands of senior citizens had to dip into their emergency savings in order to stay afloat this year. Others had to find other means of survival, like using credit cards more or other safety net programs.
The 8.7% COLA increase will help senior citizens who have struggled with the prices of daily goods to rebuild their emergency savings and build a solid foundation for the future.
When Can Recipients Expect Their Increased Social Security Check?
For the 2023 calendar year, the social security check date will depend on the person’s birthday. Here are the details:
- Recipients who claimed Social Security before May 1997 or who receive both SSI and Social Security will receive their checks on January 3
- People who receive SSI will receive their first payment for 2023 on December 30, 2022, because the 1st of January falls on a holiday while December 31 is a Saturday
- For those that have a birthday that is between the 1st and 10th of any month, their check will come on the second Wednesday of the month (January 11)
- For those that have a birthday between the 11th and 20th, their payments will come on the third Wednesday of the month (January 18)
- Finally, those that have birthdays between the 21st and 31 will receive checks on the fourth Wednesday of the month (January 25)
It’s important to keep these dates in mind so that you can plan your finances accordingly.
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That’s everything you need to know about the 2023 COLA estimate.
Whether you’re an active duty soldier or a retired veteran, it’s important that you stay informed on matters like these so that you can get the most out of your military benefits. Stay up to date with our articles, and subscribe to our newsletter!