In October, the average monthly benefit for Social Security recipients was $1,676.53. Next year, when the Social Security Administration applies the 2023 cost-of-living adjustment, that amount could grow by about $146 to $1,822 per month.
This increase is less than the $200 some retirees had hoped to see their benefit increase, as many seniors on fixed incomes struggle to keep up with inflation.
What is the 2023 Social Security COLA?
Across the board, everyone who receives Social Security benefits will increase by 8.7 percentincluding spouses, children and dependents of deceased employees.
The same goes for those who receive Social Security disability insurance and supplemental security income.
How much will Social Security benefits, disability insurance and supplemental security income increase in 2023?
|Program||Beneficiary||Payment amount October 2022||2023 Expected benefit amount|
|Social Security||Retired employees||$1,676.53||$1822.38|
|Spouse of retired workers||$831.54||$903.88|
|Children of retired employees||$787.29||$855.78|
|Disability insurance||Disabled Employees||$1,364.41||$1,483.11|
|Spouses of disabled employees||$376.44||$409.19|
|Children of disabled workers||$431.70||$469.25|
|Supplemental security income||18 years and under||$730.87||$794.45|
|18 – 65||$661.35||$718.88|
|65 years and older||$510.19||$554.57|
Which beneficiaries see the largest average increase?
Retired workers, who receive Social Security benefits, are by far the beneficiaries most likely to see the benefit largest increase in their benefit amount when the COLA 2023 is applied. This is no surprise, as retirees receive the greatest benefits to begin with. Similarly, disabled employees who qualify for disability insurance will receive the second largest increase, with an estimated increase of $119.
However, for some, this nearly nine-point bump won’t be enough to keep them out of poverty.
The President of the National Council on Aging (NCOA), Ramsey Alwin, drew attention to the issues faced by many seniors, noting that “People aged 65+ are the only group for which poverty increased last yearr, according to the US Census Bureau.” While a step in the right direction, Alwin believes many seniors, especially those of color and womenare likely to struggle to keep up with housing and healthcare costs.
In part, these groups struggle more than other workers because “many of them had low wages throughout their working lives, meaning they have lower Social Security benefits.” According to the organization, one in four seniors receives benefits “90% of their income depends on it.” This high degree of dependency means that many have no room for maneuver in their monthly budgets and inflation can quickly cut into their purchasing power.
The NCOA isn’t the only senior rights organization concerned about the increasingly damaging impact of inflation on seniors. Justice in Aging has also reported this forty-five percent of seniors struggle to meet their basic needs. These organizations and others hope to raise awareness about the risks facing the nation’s oldest residents as they age and how this threat will increase. considering low levels of retirement savings for low-income workers.