To help reduce rising prices caused by inflation, Social Security bases the COLA on adjustments to the Consumer Price Index (CPI) each year. A 7.7% rise for the all-items index for the 12 months finishing in October indicates that many Americans, particularly pensioners, are still feeling the pinch even though that the most recent CPI report (published 10 November) indicates that inflation is slowing.
In 2022, 42% of Americans said rising food costs will have the biggest impact on their budget, while 24% said rising gas prices would have the biggest impact. According to CPI data, although gas costs have increased by 17.5% this year, food prices have increased by more than 10%.
According to Forbes, an additional 8.7% will result in a monthly benefits increase of $144 for single people and $240 for married couples filing jointly, as reported earlier by GOBankingRates.
Based on SSA, the COLA will start for roughly 65 million Social Security beneficiaries in January 2023, while larger payments will start for over 7 million beneficiaries of Supplemental Security Income (SSI) on 30 December 2022.
By registering for a free Social Security account, you can learn your new benefit amount. You can also update your address, check your Social Security statement, record your wages, and do many other things.
Most beneficiaries will be able to get Social Security COLA announcements online in the messaging center of their Social Security accounts starting in December, according to the SSA. Beneficiaries will however continue to get notices in the mail unless they elect to stop doing so using an online form.
