The Social Security Administration announced Thursday an 8.7 percent cost-of-living adjustment (COLA) for approximately 70 million Americans. On average, benefits will increase more that $140 per month starting in January 2023. The adjustment represents the largest one-time increase since 1981, and the largest experienced by beneficiaries alive today. The increase that took effect this year was 5.9%.
According to the Social Security Administration, increased payments to more than 7 million SSI beneficiaries will begin December 30. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
Reports show nearly 200,000 Arkansans currently receive benefits averaging $1,560 per month in benefits.
Social Security beneficiaries can expect to realize the full cost of living adjustment increase. In previous years, the annual adjustment was eaten up by increases in the cost of Medicare Part B, the unit of Medicare that pays for doctor and hospital outpatient services. Medicare premiums are set to stay flat or even decrease going into 2023 because of a large increase last year tied to a new calculation in the cost of an Alzheimer’s treatment.
Acting Commissioner Kilolo Kijakazi says “Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room. This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned.
Social Security and SSI beneficiaries are notified by mail starting in early December about benefit amounts, but fastest way to find out new benefit amounts is to access your account to view the COLA notice online. It’s secure, easy, and people find out before the mail arrives. People can also opt to receive a text or email alert when there is a new message from Social Security–such as their COLA notice–waiting for them, rather than receiving a letter in the mail.
Information about Medicare changes for 2023 is available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, the new higher 2023 benefit amount will be available in December through the mailed COLA notice and my Social Security’s Message Center.
You can create or access your my Social Security account online at www.ssa.gov/myaccount.
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