It’s no secret that inflation has hit record levels over the past year. Thankfully, the US government is adjusting several rates and benefits to help millions of Americans through this tough time.
Almost 70 million Americans will benefit from increases in Social Security. In this article, we’ll tell you everything you need to know about social security benefits COLA 2023.
Keep reading to learn more.
Social Security Benefits COLA 2023
Those that use Social Security are about to see the biggest benefit hike since 1981. The pension program will have an 8.7% cost-of-living increase for 2023.
The 2023 COLA increase (the annual cost-of-living adjustment) will begin to take effect with the December benefits. However, most payments will reach their recipients in January of 2023. The average amount for social security checks will rise more than $140, from $1,681 to $1,827.
Inflation and social security are directly correlated. Every year, these payments are adjusted by the Social Security Administration based on the inflation rate. This year, inflation has reached its highest levels in 40 years.
Overall, senior citizens that utilize Social Security lost purchasing power, as the 5.9% COLA they received in 2022 was much lower than this year’s prices. In the end, the Social Security benefit was short by more than $500 this year.
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 surviving, 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.
2023 Social Security Benefits Payment Dates
The social security check that arrives in January 2023 will be distributed based on the person’s birthday. Here are the details given by the Social Security Administration:
- Recipients who get both Social Security and Supplemental Security Income (SSI) or who claimed Social Security before May 1997 will get their payment check on January 3
- Recipients who are expecting SSI will get their payment for 2023 on December 30, 2022
- 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 31t will receive checks on the fourth Wednesday of the month (January 25)
Mark your calendars so that you are prepared for when to expect your Social Security benefits 2023 COLA.
What Is COLA?
COLA is the cost-of-living-adjustment that was enacted to battle against the effects of rising prices or inflation.
It is usually calculated equally to the percentage increase in the Consumer Price Index. This measures the average prices of goods to measure inflationary rates.
Stay Informed On Veteran Matters
That’s everything you need to know about social security benefits COLA 2023. Whether you’re an active duty soldier or a retired veteran, there are lots of new updates that you need to stay informed on.
Make sure to read our articles to understand the latest updates that affect you and your family!