The Social Security Administration has increased the cost-of-living-adjustment (COLA) for the second year in a row. Social Security and Supplemental Security Income (SSI) will increase by 8.7% percent in 2023. The Social Security Administration says the increase, which is the largest in four decades, is due to record inflation.
As the Administration notes, this increase will impact nearly 70 million Americans. Many of them, disabled or retired, rely on the income to survive. The cost-of-living adjustment for 2023 will boost most checks by $145. However, in uncertain economic times, the increase in benefits may still be impacted by ongoing inflation.
The Federal Reserve continues to increase interest rates to curb inflation. Nonetheless, the latest reports show those efforts have not stopped the highest inflation in decades. Households are paying more for everything from gas prices to increases in the costs of medication.
In addition to the cost-of-living increase, The Social Security Administration also announced changes for those on Medicaid. Medicaid Part B plans will drop in 2020. Therefore, those residents on these plans will see an increase on monthly benefit checks. The Biden Administration praised the announcement in a statement to The Washington Post. White House Press Secretary Karine Jean-Pierre said “Seniors will have a chance to get ahead of inflation due to the rare combination of rising benefits and falling premiums. We will put more money in their pockets and provide them with a little extra breathing room.”
Ultimately, how much breathing room recipients of the cost-of-living adjustment remains to be seen. However, there are a few things certain with the upcoming increase. The Social Security Administration says the 8.7% boost will begin for more than 65 million Americans in January of 2023. The Administration says increased payments to more than seven million SSI beneficiaries will begin before the new year on December 30, 2022. Click here for more information and specifics on the upcoming COLA.