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8.7% Social Security COLA Increase In 2023: Is Everyone Eligible?

Social Security
WASHINGTON, DC - OCTOBER 14: In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, DC. The Social Security Administration announced recipients will receive an annual cost of living adjustment of 5.9%, the largest increase since 1982. The larger increase is aimed at helping to offset rising inflation. (Photo illustration by Kevin Dietsch/Getty Images)

The first Social Security payments and bank deposits with the ‘greatest’ cost-of-living adjustment in 40 years began to arrive in January 2023. However, only some people’s cost-of-living adjustment (COLA) benefits will rise. 

While the average disability benefit rose by $119 per month to $1,483, the average retiree benefit increased by $146 per month to $1,827. 

Social Security

WASHINGTON, DC – OCTOBER 14: In this photo illustration, a Social Security card sits alongside checks from the U.S. Treasury on October 14, 2021 in Washington, DC. The Social Security Administration announced recipients will receive an annual cost of living adjustment of 5.9%, the largest increase since 1982. The larger increase is aimed at helping to offset rising inflation. (Photo illustration by Kevin Dietsch/Getty Images)

Additionally, recipients will benefit from a 3% reduction in their monthly obligation for the regular Medicare Part B premiums.

 They’re falling to $164.90 per month. Outpatient medical treatment, including routine doctor’s appointments, is covered by Medicare Part B. 

The decades-high inflation that started to wreak havoc on the American economy in 2022 is what prompted the 8.7% COLA rise. The timing will have also helped Social Security beneficiaries. 

2023 Social Security COLA Increase: Who Are Eligible?

Beneficiaries expected to see the 2023 Social Security COLA increase in their benefit checks. 

Taxes and Medicare Part B premiums may influence the number of your benefit checks. 

The typical Medicare Part B premium will drop $164.90 from $170.10. Those contributions are often taken out of recipients’ Social Security benefit checks immediately. 

 Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League, told CNBC: “That will mean that beneficiaries will be able to keep pretty much all or most of their COLA increase.”

That can change if you have money deducted from your monthly paycheck for taxes. 

ALSO READ: Social Security Income Recipients Now Allowed To Get Food Benefits; Who Is Qualified?

Not Everyone Will Get An 8.7% Increase This Year

If you have already enrolled in Medicare, the premiums will be collected from your benefits in 2023 rather than 2022, resulting in a smaller deduction. GoBankingRates (via Yahoo! Finance) said your benefit might be more than 8.7% as a result.

But if you have just started receiving benefits but intend to enroll in Medicare for the first time in 2023, your COLA may be less than 8.7%. Your monthly Social Security check may no longer include the Part B premium, which may reduce the payout. 

This may also be the case if, starting in 2023, you transfer from Original Medicare to a Medicare Advantage (MA) plan and deduct the MA expenses from your benefit.

RELATED ARTICLE: Social Security Supplemental Income 2023: $914 SSI Payments To Arrive In March

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