Social Security increase 2023

High inflation will prompt a record Social Security cost-of-living increase in 2023. Here's what that means for benefits.

Multiple Democratic congressional bills have called for changing the measure used to calculate annual increases to the CPI-E. "The amount of the COLA really should not influence claiming," Elsasser said. In 2023, maximum taxable earnings will increase to $160,200, up from $147,000 this year. Whether the CPI-W is the best measure for the annual increases is up for debate. What's more, delaying benefits can increase the size of your monthly checks. Those payments are often deducted directly from Social Security benefit checks. The SSA calculates the annual COLA by measuring the change in the CPI-W from the third quarter of the preceding year to the third quarter of the current year. If you decide to claim Social Security benefits, you will get access to the record-high COLA. Amid record high inflation, Social Security beneficiaries will get an 8.7% increase to their benefits in 2023, the highest increase in 40 years. The average Social Security retiree benefit will increase $146 per month, to $1,827 in 2023, from $1,681 in 2022. "That will mean that beneficiaries will be able to keep pretty much all or most of their COLA increase," Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League, - Social Security beneficiaries can expect an 8.7% boost to benefits in 2023, the Social Security Administration announced.

The Social Security Administration announced that it's set to increase benefits to recipients in 2023. Here's how much.

Here’s [how to estimate your benefits in retirement](https://www.bankrate.com/retirement/social-security-benefits-calculator/). [when is the best time to file for Social Security](https://www.bankrate.com/retirement/when-to-take-social-security/). Those on the brink of claiming their benefit may want to carefully consider Social Security does not announce decreases in benefits. The increase means the average Social Security monthly benefit check will rise by more than $140. The rate of increase is based on the Consumer Price Index for urban wage earners and clerical workers, known as CPI-W. But the average retired worker did a little better, pulling in $1,673.88 each month. The tax rate on those wages, 6.2 percent, will remain the same in the coming year, however. How much would the new average payment be? Along with the increase in benefits is an increase in wages subject to Social Security taxes, what’s called the taxable minimum. Those who rely significantly on these benefits have been hit hard, as prices on everyday goods continue to leap higher. The

Even though the Social Security Administration (SSA) announced the cost-of-living (COLA) for 2023 on Thursday, Oct. 13, seniors and others who benefit from ...

If you fall under this category, your first check with the COLA for 2023 should arrive by Jan. Recipients, who fall under this category, will get their first check with the COLA for 2023 by Jan. Social security check recipients, who fall under this category, will receive their first check with the COLA for 2023 by Jan. If your birthday happens to be from the 21st to the 31st, your payments are scheduled for the fourth Wednesday of each month. If your birthday falls on the first to the 10th of the month, for example, you will get your payment on the second Wednesday of the month. If your birthdate is between the 11th to the 20th of the month, your payments should arrive on the third Wednesday of each month.

Welcome the increase, but be mindful of your spending in this high-inflation environment.

Social Security hasn’t seen a bigger annual hike since the early [1980s](https://www.ssa.gov/oact/cola/colaseries.html). In 2023, Medicare Part B premiums are [decreasing](https://www.marketwatch.com/story/medicare-premiums-are-decreasing-in-2023-this-is-how-much-older-americans-will-save-if-theyre-on-part-b-11664302764?mod=article_inline) about $5 a month, from $170.10 in 2022 to $164.90 in 2023. They face higher bills this year, and the COLA announcement is excellent news for them,” Romig said. [prices](https://www.marketwatch.com/story/will-social-securitys-cola-for-2023-be-high-enough-11660929959?mod=article_inline) of goods and services typically used by older Americans. [analysis](https://www.socialsecurityintelligence.com/how-the-cpi-e-compares-with-the-cpi-w-for-the-annual-social-security-cola/) from Social Security Intelligence, a blog run by Devin Carroll, a financial adviser and founder of Carroll Advisory Group. There is no limit on earnings for workers who are full retirement age or older for the entire year. The amount will increase to $160,200 from $147,000. But the COLA increase is a valuable feature that keeps retirees from truly being tied to a ‘fixed income’ when managing expenses in retirement,” Williams said. For example, the higher COLA could increase some retirees’ tax returns in future years. “The COLA is easy to take for granted in years with low inflation, but this year illustrates how vital it is.” It’s too early to say how well this COLA will keep pace with inflation in 2023,” Johnson said. Social Security’s COLA hike can partly be attributed to high inflation, experts said.

The SSA has announced an 8.7 percent COLA that will be applied to social security benefits starting in January 2023.

In 2022, the average payment was $1,232.11 and will go up to $1,339.18 once the COLA is applied in 2023. All those who receive these benefits will see the COLA applied to their checks starting in January 2023. The COLA also applies to Supplemental Security Income (SSI) as well as Social Security Disability Insurance (SSDI). The chart below shows how the COLA will impact the average benefit amount by age group. These benefits are sent to those with disabilities that are unable to work because of their condition and also cover children whose parents may need to pay for additional care for them. The massive increase occurred after the government decided that an expensive Alzheimer’s medication would be covered under the plan.

The Social Security Old-Age and Survivors Insurance Trust Fund could be depleted a year or two earlier than expected as a result of larger payouts.

The future of Social Security has emerged as a major issue in the midterm elections this year. “If Republicans in Congress have their way, seniors will pay more for prescription drugs and their Social Security benefits will never be secure.” “It is just another reminder that procrastinating on addressing these imbalances leaves the people who depend on Social Security particularly vulnerable to a further deterioration in its finances.” Budget experts warn that the reserves could run out before 2034 as a result of the larger benefits. But she added that a couple of years of high inflation probably would not fundamentally change Social Security’s long-term financing outlook. [Annual government reports in June](https://www.nytimes.com/2022/06/02/business/social-security-trust-fund.html) showed that the Social Security Old-Age and Survivors Insurance Trust Fund, which pays out retiree benefits, would be depleted in 2034.

Social Security's 8.7% cost-of-living increase is the largest in four decades.

The biggest increase, 14.3%, was in 1980, when the US was in the middle of a deep recession. "Without a COLA that adequately keeps pace with inflation, Social Security benefits purchase less over time, and that can create hardships -- especially as older Americans live longer lives in retirement." [rollout schedule](https://www.ssa.gov/pubs/EN-05-10031-2022.pdf#link=%7B%22role%22:%22standard%22,%22href%22:%22https://www.ssa.gov/pubs/EN-05-10031-2022.pdf%22,%22target%22:%22%22,%22absolute%22:%22%22,%22linkText%22:%22rollout%20schedule%22%7D) based on the beneficiary's birth date. Beneficiaries should receive letters through the month of December detailing their specific benefit rate for the new year. So if you were born from the 1st through the 10th of the month, your benefits are paid on the second Wednesday of the month, or Jan. [My Social Security website](https://www.ssa.gov/myaccount/#link=%7B%22role%22:%22standard%22,%22href%22:%22https://www.ssa.gov/myaccount/%22,%22target%22:%22%22,%22absolute%22:%22%22,%22linkText%22:%22My%20Social%20Security%20website%22%7D#link=%7B%22role%22:%22standard%22,%22href%22:%22https://www.ssa.gov/myaccount/#link=%7B%22role%22:%22standard%22,%22href%22:%22https://www.ssa.gov/myaccount/%22,%22target%22:%22%22,%22absolute%22:%22%22,%22linkText%22:%22My%20Social%20Security%20website%22%7D%22,%22target%22:%22%22,%22absolute%22:%22%22,%22linkText%22:%22My%20Social%20Security%20website%22%7D#link=%7B%22role%22:%22standard%22,%22href%22:%22https://www.ssa.gov/myaccount/#link=%7B%22role%22:%22standard%22,%22href%22:%22https://www.ssa.gov/myaccount/%22,%22target%22:%22%22,%22absolute%22:%22%22,%22linkText%22:%22My%20Social%20Security%20website%22%7D#link=%7B%22role%22:%22standard%22,%22href%22:%22https://www.ssa.gov/myaccount/#link=%7B%22role%22:%22standard%22,%22href%22:%22https://www.ssa.gov/myaccount/%22,%22target%22:%22%22,%22absolute%22:%22%22,%22linkText%22:%22My%20Social%20Security%20website%22%7D%22,%22target%22:%22%22,%22absolute%22:%22%22,%22linkText%22:%22My%20Social%20Security%20website%22%7D%22,%22target%22:%22%22,%22absolute%22:%22%22,%22linkText%22:%22My%20Social%20Security%20website%22%7D). John Larson, a Democrat of Connecticut](https://www.al.com/news/2022/09/social-security-increase-bill-would-change-cola-put-more-money-in-hands-of-seniors.html#link=%7B%22role%22:%22standard%22,%22href%22:%22https://www.al.com/news/2022/09/social-security-increase-bill-would-change-cola-put-more-money-in-hands-of-seniors.html%22,%22target%22:%22_blank%22,%22absolute%22:%22%22,%22linkText%22:%22from%20Rep.%20John%20Larson,%20Democrat%20of%20Connecticut%22%7D), would change how the COLA is calculated, linking it to the [Consumer Price Index for the Elderly](https://www.bls.gov/opub/ted/2012/ted_20120302.htm), which puts greater emphasis on the cost of food, housing, medical care and other goods and services that impact older Americans more. In fact, all the highest COLA were all in the late 1970s-early 1980s. If your birthday falls between the 11th and 20th of the month, your checks are paid on the third Wednesday, and you'll see your first COLA increase on your Jan. When will I see the 2023 COLA increase in my Social Security check? The 2023 increase is equal to an additional $145 in the average monthly Social Security check, according to nonprofit group AARP. [8.7% increase in benefits](/personal-finance/social-security-announces-highest-cost-of-living-increase-in-over-40-years/) for 2023, the largest annual bump since 1981.