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COLA 2023 : Millions of Social Security Claimants to Receive the First Wave of Payments Next Week

COLA 2023 Social security

As per the COLA 2023 update, Social Security announced the first wave of payments totaling up to $4,555 will be released on April 12, depending on the recipient’s birthday.

Social Security COLA 2023 announcement

When Will People Receive Their COLA 2023 Payments?

Social Security recipients will receive their April COLA check on Wednesday, April 12, depending on their birthdate since the Social Security Administration is scheduled to release payments on the second, third, and fourth Wednesdays of every month, The Sun reported.

If the date of birth falls between the 1st and the 10th, recipients will receive their payment on the second Wednesday of the month. Likewise, they will receive their payment on the third Wednesday of every month if their birthdate falls between the 11th and 20th of the month. Individuals born on the 21st to 30th date of each month will receive their payment on the fourth Wednesday of the same month.

The Senior Citizens League has predicted that there will be a much smaller COLA in fiscal 2024. This is due to the declining 12-month average rate for the CPI-W, according to a report by GoBankingRates. The CPI-W is shorter than the current 12-month average and it is used to calculate inflation. The Senior Citizens League believes that Social Security recipients will see a significant reduction in their COLA payments in the coming years.

READ ALSO: Social Security Payouts Are At Risk Because Assets Will Expire One Year Faster Than Planned, According To New Research

Supplemental Security Income Benefits Will Increase by 8.7%

Around 70 million Americans who receive Social Security and Supplemental Security Income (SSI) benefits will see an 8.7% increase in 2023. The COLA began with payments to over 65 million Social Security beneficiaries in January 2023, while more than 7 million SSI beneficiaries started seeing increased payments from December 30th, 2022.

The maximum amount of earnings subject to Social Security tax will increase to $160,200, while the earnings limit for workers who are below the full retirement age will increase to $21,240. For each $2 earned over $21,240, $1 is deducted from benefits. People reaching their full retirement age will see an increased earnings limit of $56,520.

Once an individual exceeds the annual income limit of $56,520, their benefits are reduced by $1 for every $3 earned until they achieve full retirement age. Workers who have reached full retirement age and above can earn an unrestricted amount of income throughout the year.

RELATED ARTICLE: Here Are Those Who May Be Harmed By Future Social Security Cutbacks

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