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COLA 2023: 8.7% Benefit Increase

Author: United States Social Security Administration
Published: 2022/10/13 - Updated: 2022/10/15 - Peer-Reviewed: Yes
Topic: U.S. Social Security (Publications Database)

Page Content: Synopsis Definition Introduction Main Item

Synopsis: 8.7 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023.

• Medicare premiums are going down, and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room.

• The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200 from $147,000.

Introduction

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase by 8.7 percent in 2023, the Social Security Administration announced today. On average, Social Security benefits will increase by more than $140 per month starting in January.

Main Item

The 8.7 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor's Bureau of Labor Statistics.

"Medicare premiums are going down, and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room. This year's substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising. It shows that we can provide more support to older Americans who count on the benefits they have earned," Acting Commissioner Kilolo Kijakazi said.

Continued below image.
Table 1. Cost-of-Living Adjustment (COLA).
Table 1. Cost-of-Living Adjustment (COLA).
Continued...
Continued below image.
Table 2. Cost-of-Living Adjustment (COLA).
Table 2. Cost-of-Living Adjustment (COLA).
Continued...

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200 from $147,000.

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. The fastest way to find their new benefit amount is to access their personal my Social Security account to view the COLA notice online. It's secure and easy, and people find out before the mail arrives. People can also receive a text or email alert when a new message from Social Security - such as their COLA notice - is waiting for them, rather than receiving a letter in the mail.

For Social Security beneficiaries enrolled in Medicare, their new higher 2023 benefit amount will be available in December through the mailed COLA notice and my Social Security's Message Center.

Record of Yearly COLA Percentages Since Inception

Social Security Cost-Of-Living Adjustments Since 1975
Year COLA
1975 8.0
1976 6.4
1977 5.9
1978 6.5
1979 9.9
1980 14.3
1981 11.2
1982 7.4
1983 3.5
1984 3.5
1985 3.1
1986 1.3
1987 4.2
1988 4.0
1989 4.7
1990 5.4
1991 3.7
1992 3.0
1993 2.6
1994 2.8
1995 2.6
1996 2.9
1997 2.1
1998 1.3
1999 2.5
2000 3.5
2001 2.6
2002 1.4
2003 2.1
2004 2.7
2005 4.1
2006 3.3
2007 2.3
2008 5.8
2009 0.0
2010 0.0
2011 3.6
2012 1.7
2013 1.5
2014 1.7
2015 0.0
2016 0.3
2017 2.0
2018 2.8
2019 1.6
2020 1.3
2021 5.9
2022 8.7

Attribution/Source(s):

This peer reviewed publication was selected for publishing by the editors of Disabled World due to its significant relevance to the disability community. Originally authored by United States Social Security Administration, and published on 2022/10/13 (Edit Update: 2022/10/15), the content may have been edited for style, clarity, or brevity. For further details or clarifications, United States Social Security Administration can be contacted at ssa.gov. NOTE: Disabled World does not provide any warranties or endorsements related to this article.

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Cite This Page (APA): United States Social Security Administration. (2022, October 13 - Last revised: 2022, October 15). COLA 2023: 8.7% Benefit Increase. Disabled World. Retrieved December 12, 2024 from www.disabled-world.com/disability/social-security/usa/2023-cola.php

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