social security benefits 2023 increase

Social Security Benefits 2023 Increase: How Much Will Social Security Increase in 2023?

As inflation continues to make things more expensive, people who get Social Security Benefits could get a 10% Increase in 2023. The exact cost-of-living adjustment or COLA, for 2023 will be announced in the fall, but the nonpartisan Senior Citizens League says the increase could be as much as 10.1%. That amount would add $175.10 a month to the average pension.

The Consumer Price Index for July showed that inflation had increased 8.5% over the past year. This is especially hard on people with fixed incomes, like those who depend on Social Security. The Consumer Price Index for Urban Wage Earners and Clerical Workers, or CPI-W, used to figure out this year’s COLA, will take inflation into account.

After the September CPI report comes out on Oct. 13, which is when the COLA for 2023 is likely to be announced, if the monthly payments go up by more than 10%, it will be the first time since 1982, when COLA was 11.2%, that COLA has been in the double digits.

In 2022, the COLA for Social Security recipients was 5.9%, a big jump from the previous two years.

As of July 2022, the average monthly benefit, according to the Social Security Administration, is $1,544.70.

Social Security Benefits 2023 Increase
Social Security Benefits 2023 Increase

How Is The COLA Calculated?

The US Bureau of Labor Statistics puts out a monthly report called the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), used to figure out any change in COLA. The Social Security Administration uses the monthly average from the third quarter of the last year of the COLA, which is 2021 in this case, to the third quarter of the current year. Social Security payments are usually made on the first of every month, but January 1 is a holiday, so the payment is made at the end of December.

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