Social Security Benefits Cola Increase 8.7% In 2023
Next year, Social Security will rise 8.7%. This will be the fourth largest rise since 1975, when inflation adjustments began.
The Social Security Administration stated Thursday that the COLA will raise seniors' average monthly check by $146 to $1,827 in January.
The 5.9% COLA hike from previous year was the largest since 1982. From 2010 until 2020, COLA rose 1.7% per year.
The government bases the COLA adjustment on the average yearly increase in the July-September CPI for wage earners and city office workers.
Half of the 65-and-older Americans get 50% of their income from Social Security. For a fifth of them, Social Security provides 90% of their income.
Will Social Security COLA hike be felt?
Mary Johnson, a Social Security and Medicare policy analyst
at The Senior Citizens League, said these Americans won't notice the COLA rise. They tend to have lower incomes and no pensions.
Whoever is eligible to get Social Security benefits will get the inflation adjustment automatically.
Who can get a COLA from Social Security?
The benefits and pensions for veterans are tied to the same COLA as Social Security. So, in January, they should get an 8.7% raise.
VA compensation rates
If your AGI plus half of your Social Security income is $34,000 or $44,000, up to 85% of your benefits could be taxed.
Social Security tax maximum in 2023