What To Expect From Benefits in New Year

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Millions of Americans will see an increase in the amount they receive in Social Security benefits starting in January.

That’s thanks to an 8.7 percent cost-of-living (COLA) adjustment — the largest in more than 40 years — announced by the Social Security Administration (SSA) in October.

Social Security and Supplemental Security Income (SSI) benefits will increase by an average of $140 per month starting in January, according to the SSA.

When will the increased payments start?

In this photo illustration, a Social Security card lies next to checks from the U.S. Treasury on October 14, 2021 in Washington, DC. Millions of Americans will see an increase in the amount they receive in Social Security benefits starting in January.
Getty Images/Kevin Dietsch

Those who receive SSI benefits will receive their January payment on December 30, 2022.

For most months of the year, SSI recipients receive their payments on the first day of the month, but when that falls on a weekend or a federal holiday, they receive it on the last business day prior to the first day of the month. Since January 1, 2023 is a Sunday and December 31, 2022 is a Saturday, the January distribution will be issued on Friday, December 30.

“We do this to avoid putting you at a financial disadvantage and to make sure you don’t have to wait longer than the first of the month to receive your payment,” the SSA states on its website.

“It does not means that you received a double payment in the previous month, so you do not need to contact us to report the second payment.”

However, Social Security payments are sent based on the recipient’s birthday, so not everyone receives them on the same day.

Those born between the 1st and 10th of the month will receive their benefits on the second Wednesday of the month, so they will receive their first payment with the 2023 COLA adjustment on January 11.

Those with birthdays between the 11th and 20th of the month will receive their payment on the third Wednesday of the month, so their first increased payment will be paid on January 18, 2023.

And those with a birth date between the 21st and 31st of the month will receive their payout on the fourth Wednesday of the month, i.e. January 25, 2023.

Those who received Social Security before May 1997 or who receive both Social Security and SSI benefits will receive their Social Security payment on the third day of the month, which is January 3. They receive their SSI payments on the first of the month, except when it falls on a weekend or federal holiday.

Why is the COLA so high?

Rising inflation pushed the 2023 COLA to its highest since 1981.

The figure is calculated based on average inflation in the third quarter of a year based on the consumer price index for urban wage earners and white-collar workers.

Payments that include the 2023 COLA will be made to more than 65 million eligible Social Security recipients and more than seven million SSI beneficiaries, the SSA said.

Teresa Ghilarducci, an economics professor at The New School for Social Research who focuses on retirement security, previously shared News week that the COLA is “so high this year because inflation was unusually high in the third quarter.”

The increase in benefits “is designed to help Social Security recipients maintain their standard of living despite the rise in prices,” Ghilarducci said.

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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