Record Increase for Social Security Benefits: When Does COLA Take Effect?

Date:

Through rising inflation in 2022, recipients of Social security benefits are about to see the largest increase in the payment of their checks since 1981, and the fourth-highest increase of all time. The adjustment of the cost of living for social security in 2023 it will be 8.7%

That increase in benefits will add up to about $146 more per check for the average retiree, according to the nonprofit AARP. The change is determined by the year-over-year inflation in the third quarter — in this case, July to September 2021 versus July to September 2022.

Read more: Everything you need to know about Social Security benefits are increasing

“The guaranteed Social Security benefits, including the annual COLA, are more important than ever as high inflation continues to be a problem for older Americans,” AARP CEO Jo Ann Jenkins said in a statement.

When will I see the COLA increase in my Social Security check?

The COLA takes effect with December 2022 benefits, appearing on checks mailed in January 2023.

Social Security payments are made on Wednesdays, on a rollout schedule based on the beneficiary’s date of birth. So if you were born from the 1st to the 10th of the month, your benefit will be paid on the second Wednesday of the month, i.e. January 11, 2023.

If your birthday falls between the 11th and 20th of the month, your checks will be paid on the third Wednesday and you will see your first COLA raise on your January 18th check.

Those born between the 21st and the end of the month will receive benefits on the fourth Wednesday, which will begin on January 25, 2023.

When will I know what my allowances are for 2023?

Beneficiaries should receive letters through the month of December detailing their specific payout rate for the new year. If you miss this letter, you can still verify your increase online via the My Social Security website.

How does this year’s COLA compare to past increases?

Since 1975, Social Security benefits have been automatically adjusted each year based on increases in the cost of living. Previously, lawmakers had to vote for increases, which meant it could be years before retirees saw a bump in their checks.

The announced 8.7% increase for 2023 is the largest since 1981, when it was 11.2%.

The biggest increase ever, 14.3%, was in 1980, when the US was in the middle of a deep recession. In fact, all of the highest COLAs were in the late 1970s and early 1980s.

Year

COLA

1979

9.9

1980

14.3

1981

11.2

There was no COLA in 2009, 2010 and 2015 due to the lack of inflation during and after the Great Recession of 2008.

For more about Social Security, to learn when the checks go outhow access your payments online and how benefits are calculated.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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