Social Security COLA 2023 release news summary | 16 October 2022
COLA 2023 Headlines: Sunday, 16 October 2022
-Social Security Adminstration announced historic increase of 8.7 percent.
- How much will Social Security benefits increase next year?
-Military pensions and VA disbability benefits affected by 2023 COLA.
- Federal government pensionswill not see the same COLA increase applied.
- How to calculate your new Social Security benefit amount, given 2023 COLA.
-COLA 2023 will be applied beginning early next year.
- Unexpected Social Security payments,what are they?
Disabled veterans and military retirees will see their monthly checks get a boost in 2023. The Social Security Administration (SSA) announced the biggest cost-of-living adjustment (COLA) since 1981 after the September 2022 inflation report was released.
This increase could not come at a more critical time. Many veterans are extremely dependent on these benefits, and with inflation cutting into purchasing power in such a significant way, the COLA will be of much assistance.
President Biden calls out Big Pharma
For years, there’s been no check on how fast Big Pharma — the big pharmaceutical companies — can raise drug prices.
This year alone, drug companies raised the price of more than 1,200 drugs higher than the rate of inflation. This year alone. And guess what? They didn’t do anything else with the drug. It’s not like they found a new way to make it better. The same exact drug — 1,200 of them.
The average price increase rose for those drugs over 30 percent. Thirty percent. It’s just wrong. It’s simply wrong.
"The higher-than-expected COLA costs could have long term implications for Social Security solvency, and could potentially move the insolvency date, currently around 2034, forward."
The same inflation that continues to take a toll on household finances resulted in a historic 2023 cost-of-living adjustment increase. The 8.7 percent COLA is the largest in 42 years and will boost not only Social Security payments but also pensions and benefits for those who served in the Armed Forces and civil government employees.
However, the 2023 COLA, apart from Social Security benefits, will not be applied uniformly across the other federal government pension programs.
While benefits are likely to rise with inflation the threshold when tax is levied remains the same meaning more pensioners will be taxed.
Medicare Part B premiums jumped 15 percent in 2022 but for the first time in a decade the price next year will reduce.Here’s a look at 2023 Part B costs.
The US Social Security Adminstration announced the largest cost-of-living adjustment in over four decades. Clocking in at 8.7 percent, this historic COLA will shift up the maximum benefit for Social Security by a substantive margin.
The maximum depends on the age at which a person retires.
Disabled veterans and military retirees will see their monthly checks get a boost in 2023. The Social Security Administration announced the biggest cost-of-living adjustment since 1981 after the September 2022 inflation report was released.
Military pensions and disability payments, like most other similar government payments, are required by law to use SSA calculation to keep benefits in line with rising prices. Starting in January 2023, an 8.7 percent increase will be applied to monthly payments surpassing last year’s 5.9 percent bump.
The Social Security Administration announced the 2023 COLA on 13 October and the boost was a doozy. Great news for those that are finding their monthly checks not going as far in the face of rising prices. Bad news for those that will break the income thresholds where a portion of their benefits are liable to taxation.
Before 1984, Social Security benefits were not taxed. However, to keep the Trust Fund that supports the program solvent, bipartisan legislation was passed totax a portion of payments to seniors citizens, surviving spouses, and the disabled if they had income above certain thresholds.
Social Security and Medicare on the ballot in November
Social Security and Medicare are both facing financial shortfalls that will push them to insolvency if nothing is done. This year's report on the health of the Medicare fund gave it an additional two years before it runs out of money which is now predicted to be in 2028.
Prior to the 8.7% COLA increase to benefits the trustees of the Social Security funds determined the combined funds will run dry by 2035, just the retirement fund one year earlier. The outsized boost to benefits was more than double the increase used to calculate the prediction which could move the insolvency date up by a whole calendar year.
Both programs need reform but what that looks like will be shaped by the results of Midterm Elections in November. Legislation has been proposed in the House by Democrats to expand Social Security and boost funding. On the other side of the aisle Republicans are talking about making the programs discretionary spending with sunset clauses meaning that they would need to reapproved every five years.
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The cost-of-living adjustment announced for 2023 was historically big at 8.7%,but it pales in comparison to those at the end of the Great Inflation.
Social Security beneficiaries will see larger monthly checks in 2023 with an historic COLA increase, but that raises concerns for the program’s solvency.
Will 8.7% boost Dems in election?
With tens of millions of Americans getting a financial leg up in the coming months thanks to the Democratic party, some on the other side are trying to argue that it will not help them in the upcoming elections. What do you think?
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President Biden talks social security and medicare
The president, in Portland for a two-day trip to campaign for Democrats ahead of the 8 November general election, delivers a speech in which he discusses the Inflation Reduction Act, as well as his plan to protect and strengthen Medicare and Social Security.
You can watch and listen.
With the SSA announcing an 8.7 percent COLA, many are wondering how to calculate their new benefit amount. We will talk you through the process.
Only three COLAs have been larger than in 2023
Thursday's cost-of-living adjustment is the fourth largest since the Social Security Administration began implementing the annual mechanism nearly half a century ago.
Since 1975, the only increases that have been greater than the 8.7% hike for 2023 came in a three-year period at the end of the 70s and the beginning of the 80s.
In 1979, the COLA was 9.9%. In 1980, it then rose to a record 14.3%, before 12 months later it was 11.2%.
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The Social Security Administration announces annually its cost-of-living adjustment (COLA) to benefits so that they keep pace with inflation. With prices rising at a clip not seen in four decades many beneficiaries will be anxious to see what the boost to their monthly checks will be in 2023.
While the agency mails out letters throughout the month of December, but they request not to contact them until January, the first month when beneficiaries will see payments with the higher amount, as the notice could take time to reach you.
However, you may not need to wait for the mail to know how much your payments will increase based on the 2023 COLA. Most beneficiaries can access the notice online.
COLA 2023 official announcement
If you like to hear your communications straight from the financial benefits horse's mouth, then here you go...
Welcome to AS USA 2023 COLA increase updates
Hello and welcome to AS USA's live blog on the 2023 Social Security COLA increase for Sunday, 16 October.
The Social Security Adminstration announced the 2023 Cost-of-living adjustment (COLA) for social security benefits, for programs like Supplemental Security Income and Social Security Disability Insurance. Other government pension and benefits programs will also be affected by the 8.7% increase.
The COLA offered for next year is historic in size after inflation has plagued markets for basic commodities consumed by most households, including food, shelter, utilities, and gasoline.