Social Security Benefit Increase for 2023: Here’s How Much You Can Expect

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Social Security benefits could soon see their biggest increase in more than 40 years.

In 2022, the cost of living adjustment to Social Security, or COLA, was already a significant 5.9%, equivalent to about $93 per month. In June, however, the consumer price index stood at 9.1%.

The CPI, which charts year-over-year price changes for goods and services, fell to 8.5% in July and was just 8.3% in August. That’s good news for the economy, but it’s still 18 straight months that inflation far surpassed the Federal Reserve’s 2% target.

The 2023 COLA will be announced in October and, based on the latest data, experts think Social Security benefits could rise by at least 8.7%.

“A COLA of 8.7% is extremely rare and would be the highest ever received by most Social Security beneficiaries,” Mary Johnson, policy analyst for the nonprofit Senior Citizens League, said in a statement. In fact, the COLA has crossed 7% only five times since 1975.

How Much More Could Seniors See in Social Security Checks in 2023? When will the new housing costs rate be announced? Read on to find out.

For more information about social securityto learn when the checks go outhow to access your payments online and how benefits are calculated.

How Much Will Social Security Benefits Increase in 2023?

Social Security Administration will not disclose cost of living adjustment in 2023 until Octoberbut many experts expect an even greater increase than in 2022.

Forecasts have fluctuated widely: In June, the impartial Committee for a Responsible Federal Budget estimated Social Security benefits would rise as much as 10.8% to account for inflation, or nearly $180 in additional monthly benefits. The following month, Marc Goldwein, the organization’s senior policy director, tweeted that if inflation stayed on the current routethe increase would be 11.4% – even higher than the record 11.2% increase in 1981.

Richard Johnson, director of the Urban Institute’s retirement policy program, told AARP on Aug. 10 that “somewhere in the 9% range is probably a reasonable estimate.”

A 9% cost of living adjustment to Social Security by 2023 would add about $150 on average in monthly checks, or an additional $1,800 per year. And Munnell said it’s “very likely” that the benefits would increase by more than that.

Last month, the Senior Citizens League projected a COLA of 9.6% in 2023. However, with inflation data from August, the organization has revised its forecast to a more conservative 8.7%. The average Social Security check is $1,657 — if the 8.7% increase is correct, that would add up to about $144 per month.

Retirees saw a record increase in their Social Security checks in 2022. Next year, the adjustment could be even greater.

LPETTET/Getty Images

Aside from an eventual COLA increase, a bill before Congress could mean Social Security recipients will receive an additional $2,400 per year by 2023. Introduced by Rep. Peter DeFazio and Sen. Bernie Sanders, the Social Security Expansion Act would add $200 to every monthly check for anyone currently receiving benefits or turning 62 next year. However, the measure has not progressed since its introduction in June.

Another proposal from Rep. John Larson of Connecticut is said to change the way COLA is calculated, by putting more emphasis on the cost of goods and services that affect seniors, such as food, housing, clothing and medical care.

Larson’s bill would also establish a new minimum benefit of 25% above the poverty line, eliminate the current five-month waiting period to receive payments, and provide care credits to people who leave the workforce to care for children or other dependents.

When will I know what my Social Security benefits are for 2023?

The Bureau of Labor Statistics is scheduled to release inflation data for September on Oct. 13, and the Social Security Administration typically announces the cost-of-living adjustment soon after — the same day in some cases.

Beneficiaries must then receive letters stating their specific payout percentage. If you miss this letter, you can still verify your increase online via the My Social Security website. The COLA will take effect with December benefits, which will appear on checks received in January 2023.

When will I see the increase in my Social Security checks?

Social Security benefits are paid on Wednesdays, according to a rollout schedule based on the beneficiary’s date of birth: If you were born from the 1st to the 10th of the month, your benefits are paid on the second Wednesday of the month.

If your birthday falls between the 11th and 20th of the month, your checks will be paid on the third Wednesday, and you’ll 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, in 2023, on January 25.


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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