Recently, the SSA announced that the cost-of-living adjustment (COLA) for 2023 is 8.7% – the highest increase in payments in decades. This boost in monthly benefits will begin in January 2023. This is the highest the COLA has ever been since 1981, which saw an increase in benefits by 11.2%. For the approximately 70 million Americans collecting Social Security benefits, this may be the highest increase in benefits they’ve seen in their lifetime.
To keep up with continuously rising inflation, the Social Security Administration (SSA) announces the adjustment for monthly benefits for the upcoming year in the second week of October. This is an effort to help ensure that beneficiaries stay financially sound while the cost of living rapidly rises.
The change is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The SSA calculates the annual COLA by measuring the CPI-W change from the previous year’s third quarter to the current year’s third quarter.
What to Expect From Monthly SSD Payments After COLA
Once the 2023 COLA is in effect, beneficiaries will see an average increase of $140 to their monthly checks. In addition, the monthly Social Security retiree benefit will increase by an extra $146 monthly. While SSI is income-based, the 7 million SSI recipients in the U.S. will see this increase in their payments on December 30th, 2022.
Social Security beneficiaries are usually notified about their increase in benefits by mail starting in early December. However, the My Social Security online portal is the fastest way to access your increased benefit amount.
For more information from the SSA about COLA, click here. If you’re applying for benefits and need help, speak with the Disability Attorneys of Michigan for free today.
We Know the SSA. Speak with the Disability Attorneys of Michigan Today
As prices continue to surge, many are beginning to worry about making ends meet. If you have recently become disabled and are out of work, the SSA could provide financial support you are entitled to to help you get by. Unfortunately, navigating the SSA claims process tends to be confusing to navigate alone. That’s where we come in, protecting your rights and taking on the SSA so you receive the benefits you need and deserve.
Contact the Disability Attorneys of Michigan today by submitting the form below or calling our office toll-free at 800-949-2900 for a free consultation.