A record-breaking increase after 40 years, the Social Security beneficiaries will get an 8.7% boost to their benefits in 2023.
The Social Security in 2023
It was announced on Thursday, that the Social Security Administration has been revisioning an increase for more than $140 per month on average starting New Year. The average Social Security retiree benefit will boost up to $146 monthly, to $1,827 in 2023, from $1,681 in 2022.
The Senior Citizens League, a nonpartisan senior group, had estimated the prior month that the COLA might increase to 8.7% next year. The confirmed 8.7% bump to benefits tops the 5.9% increase beneficiaries saw in 2022, which at the time was the highest in four decades. The last time the cost-of-living adjustment was higher was in 1981 when the increase was 11.2%.
Seniors should be financially stable by the new year as the Federal Reserve determined to push inflation down through interest rate rises as it starts to moderate.
The Other Factors that Benefit Checks
Furthermore, there are two factors that seniors will benefit as well such as Medicare Part B premiums and taxes that may influence the size of your benefit checks. The standard Medicare Part B premium will be $5.20 lesser next year to $164.90, down from $170.10. Those contributions are frequently deducted directly from Social Security benefits.