Social Security Announces Benefit Increase for 2023
In 2023, Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent on average—which amounts to about $140 per month more in income starting January 1 of that year.
The increase is calculated by a formula that takes into account changes in the Consumer Price Index (CPI) and average wage growth over the past year. The Social Security Act requires this annual cost-of-living adjustment (COLA) to be made each year on January 1, based on a comparison between the third quarter of the current year and third quarter of the last year in which there was no COLA.
According to the Social Security Administration (SSA) the increase will begin with benefits payable 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. This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned,” Acting Commissioner Kilolo Kijakazi said.
How Will I Be Notified Regarding the Increased Social Security Benefit?
You will be notified of your increased Social Security benefit by letter. The letter will be mailed to you at your address on file with the Social Security Administration, and it will include information about how much your monthly benefit has increased.
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 out their new benefit amount is to access their personal my Social Security account to view the COLA notice online. It’s secure, easy, and people find out before the mail arrives. People can also opt to receive a text or email alert when there is a new message from Social Security--such as their COLA notice--waiting for them, rather than receiving a letter in the mail. People may create or access their my Social Security account online at www.ssa.gov/myaccount.
Information about Medicare changes for 2023 is available at www.medicare.gov. 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.
2023 Social Security Changes: The Fact Sheet
Download the Social Security Changes Fact Sheet here.
Source for this article: SSA.gov