With an 8.7% cost-of-living hike in 2023, U.S. seniors and millions of other Social Security users will shortly get the largest benefit rise since 1981.
The Social Security Administration states that the annual cost-of-living adjustment (COLA), goes into effect with the December benefits but that payments won’t start until January 2023. In comparison to the typical benefit of $1,681 in 2022, the average benefit check will increase by over $140 to $1,827 per month as a result of the increase.
The Social Security Administration increases benefits each year by the inflation rate, which has reached record levels in the past 40 years this year. Seniors’ purchasing power decreased this year since the 5.9% raise they will receive in 2022 is much less than the price increase of this year. According to a survey conducted in October by the advocacy organization the Senior Citizens League, almost 4 in 10 seniors claimed they had to use their emergency savings to survive this year.
According to Mary Johnson, Social Security, and Medicare policy analyst at The Senior Citizens League, “anytime they experience a loss of purchasing power, that means they are using up other retirement assets, like savings, or maybe placing more on credit cards, or they could turn to safety net programs.”
“Retirees are just now attempting to deal with and handle, and they have never experienced anything like this before,” she continued.
Seniors who have fought with rising prices for everything from food to gas would benefit from the 8.7% COLA rise for 2023, she said, but it might take some time for them to rebuild their emergency funds or reclaim stability financially.
Social Security COLA 2023: Payment Schedule
Payments are made on the 2nd Wednesday of the month to customers whose birthdays are between the first and tenth of that month. Therefore, the first check from the COLA for 2023 will arrive on 11 January.
Payments will be deposited or sent on the 3rd Wednesday of the month for those whose birthdays fall between the 11th and 20th of any month. On January 18, they will receive their first check which includes the higher COLA.
Payments are made on the 4th Wednesday of the month to recipients whose birthdays fall on the 21st and the 31st. On January 25, they will receive their first COLA for 2023.
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