Social Security’s cost of living adjustment, or COLA, in 2023 could see an 8 to 10% increase in their monthly payments and it will be much larger than usual to keep up with record inflation.
Social Security COLA 2023: Higher Payment Are Expected To Receive This Year (PHOTO: Yahoo News)
Social Security’s COLA For 2023
The Social Security cost-of-living adjustment for 2023 is anticipated to be higher than average. Social Security recipients will expect a major boost in their monthly benefits in 2023 as the federal safety net races to keep up with high inflation.
The COLA is calculated based on the rate increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), an inflation gauge measured by the U.S. Bureau of Labor Statistics (BLS). It measures the average change over time in the prices that workers are paying in a “basket of consumer goods and services.”
The SSA state on its website that the COLA is the same as the percentage increase in the CPI-W from the third quarter average of the previous year to the same average from the current year. If there is an increase, it’s rounded to the nearest tenth of a percent. That same increase is used for monthly Social Security payments.
How much Social Security benefits increase in 2023?
Social Security’s COLA for 2023 is 8.7 percent, the largest such increase since 1981. Recent boosts in the consumer price index mean that monthly benefits checks will increase by:
- $146 for individual retired workers
- $238 for a retired couple
- $282 for those with children receiving survivors’ benefits
- $137 for those without children receiving survivors’ benefits
- $119 for disabled workers
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