Millions of American Social Security beneficiaries will soon see their pensions increase with an 8.7% cost-of-living increase in 2023. This will be the largest such increase since 1981.
The annual cost-of-living adjustment (COLA) goes into effect with December benefits, although most of those payments will be made next January, the Social Security Administration reported.
Thus, the average benefit check will rise from $1681 this year to $1827 per month during 2023.
The adjustment is made according to the inflation rate
This year, inflationary levels are at their highest point in four decades, so adjustments will be made accordingly. This year, the average Social Security benefit has lagged behind inflation by more than $500, according to an estimate by the senior advocacy group Senior Citizens League.
That means 40% of seniors exhausted their emergency savings this year in order to keep up with inflation.
The 8.7% COLA adjustment by 2023 will help seniors get by, although it may take a while for some of them to rebuild their emergency savings.
Here are the payment dates for Social Security benefits in 2023
People who applied for Social Security before May 1997 or who receive both Social Security and Supplemental Security Income (SSI) will receive their Social Security payment on January 3. SSI recipients will receive their first payment of 2023 on December 30 of this year.
For people whose birthday falls between the 1st and 10th of any month, their Social Security payments arrive on the second Wednesday of the month. The first will arrive on January 11.
Those whose birthdays fall between the 11th and 20th of any month will receive their payments on the third Wednesday of the month. The first in 2023 will be January 18.
If the birthday falls between the 21st and 31st, payments are scheduled for the fourth Wednesday of each month. The first COLA of 2023 will arrive on January 25.
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