In October this year the administration of social insurance (SSA) announced how much the monthly payments will increasethanks to the Cost of Living Adjustment (COLA), for retirees, recipients of Supplemental Security Income (SSI) and those receiving disability and survivor benefits.
The COLA is calculated annually based on the consumer price index for urban and administrative employees (CPI-W) covering the third quarter of the last previous year to the third quarter of the current year.
According to official information from the SSA, The year-to-year difference was 8.7 percent, so Social Security payments will increase that percentage through 2023.
In this year 2022, the average payments from retirees were $1,657, so on that basis payments would be flat with a COLA of 8.7% $1,801 per month. Nevertheless, This estimate is approximate only, as SSA calculates payments for each beneficiary annually based on the “Primary Coverage Amount” (PIA) rather than by adding the COLA to the actual benefit.
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Social Security: When do the COLA increases start and when will I get them?
The COLA 2023 will come into effect in December and will be applied to benefits from January next year for retired workers and survivor benefit recipients.
Secondly, SSI recipients will see their first payment increased on December 30th. The first day of January 2023 falls on a weekend, so payment for that month will be sent on the previous Friday 30th.
Here we share the full payment plan for 2023.