The annual COLA goal is to support those who only rely on Social Security to maintain their spending power despite inflation.
COLA To Social Security Adjustments In 2023
This 2023, the Cost of Living Adjustment (COLA) boosted to 8.7% which will have some major modifications for beneficiaries of Social Security, Social Security Disability Insurance (SSDI), and Supplemental Security Income (SSI).
SSI recipients will anticipate being entitled to receive their monthly payment increase by a maximum of $73 per month. Those who claim Social Security will ge$144.10 more a month. Social Security recipients will witness the extra cash for the first time when they receive their January checks.
SSI beneficiaries will expect two payments in December as January 1, 2023, is a federal holiday and it falls on a Sunday. Hence, the second payment on December 30 will reflect the new benefit amount for next year. The first payment worth $841, went out on December 1. Around 65 million Americans currently claim Social Security, while seven million receive SSI benefits. Some people also get both.
On the other hand, SSDI beneficiaries receive the same cost-of-living adjustment, or COLA, that other beneficiaries receive. The average Social Security Disability Insurance (SSDI) has gained increased from $1,364 to $1,483 per month.
Here’s How Cola Calculated
The COLA is based on third-quarter data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W is a variation of the better-known consumer price index (CPI), which is most typically used to measure inflation.