Social Security Benefits: Here’s When the 2023 Cost of Living Increase Will Be Announced

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Every year Social Security benefits are adjusted to try to keep up with inflation. The adjustment for the cost of living, or COLA, shown in January’s check is based on the state of the economy from the previous year.

Rising inflation in 2021 resulted in a significant increase in COLA in 2022 of 5.9%, its highest in years, with the average retiree receiving monthly checks for about $1,666.

With the economy continues to struggleThe adjustment is expected to be even higher for 2023, with economists and analysts forecasting bumps from 8.7 to nearly 10%.

But when will we know what Social Security benefits will be for 2023? Read on to find out.

For more information about social securitylearn how could be a lot of increase next yearhow benefits are calculated and how to access your benefits online.

When will we know how much Social Security benefits will rise next year?

The COLA is determined by data reported in the Consumer Price Index – the year-over-year change in prices for goods and services – for July, August and September.

CPI data will be released by the US Bureau of Labor Statistics on the 13th of the following month. For example, on September 13, the agency reported that inflation was 8.3% in August, down slightly from 8.9% in July.

As a result, the Social Security Administration will not announce what the COLA increase will be until October, after reviewing September’s numbers.

In 2021, the agency announced the September CPI and annual COLA increase on the same day. If the agency sticks to that pattern this year, we should know how much next year’s Social Security benefits will rise on Oct. 13.

How much can benefits increase in 2023?

With the August CPI available, the nonprofit Senior Citizens League has forecast a COLA increase of 8.7%. That would work out to an extra $144 per month for most recipients.

However, that is one of the more conservative estimates. In an Aug. 30 Marketwatch column, Alicia Munnell, director of Boston College’s Center for Retirement Research, predicted the boost would be 8.9% at the bottom and 9.5% at the top.

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

A 9% increase would add about $150 in checks each month.

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

The annual increase will take effect with December payouts, which will appear on January 2023 checks.

Social Security benefits follow a rollout schedule based on the beneficiary’s date of birth: If you were born from the first day through the 10th of the month, your benefits will be paid on the second Wednesday of the month.

If your birthday falls between the 11th and 20th, your check will be paid on the third Wednesday, so you’ll see your first COLA raise on January 18, 2023.

Retirees born between the 21st and the last day of the month receive benefits on the fourth Wednesday. In that case, your first increase would occur on January 25, 2023.

Beneficiaries should then receive letters in December with their specific payout percentage. You can also check your rate on the My Social Security website.

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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