What’s the COLA for 2023 for Social Security?
The first payments based on the 2023 cost-of-living adjustment increase will start hitting Social Security recipients bank accounts at the end of December.
The Social Security Administration (SSA) announced an 8.7 percent cost-of-living adjustment increase for 2023 in October. The boost to Social Security benefits is the largest since 1981 and the fourth biggest in the history of COLA increases.
The increase will affect payments for old-age, survivor and disability benefits as well as Supplement Security Income, which will be the first payments to reflect the augmented amount hitting bank accounts 30 December 2022. The 2023 COLA increase will also be applied to government and military pensions along with VA benefits.
How much will the 2023 COLA increase Social Security benefits?
The historic increase to Social Security benefits was the result of high inflation throughout the year, with the final figure determined by the figures registered in the third quarter of 2022. The average recipient of retired worker benefits will see a monthly payment of $1,827 an increase of $146. That will translate into an extra $1,752 over the course of 2023.
The Social Security Administration will begin sending out notices in the mail to beneficiaries of exactly what their monthly payments will be next year.
No need to wait until you notice arrives in the mail to see 2023 COLA increase to benefits
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 through the Message Center when they log into their personal account in the “my Social Security” app. You can even sign up so that you’ll receive a notification via text or email of when the information is available for you online.
When will benefits with 2023 COLA arrive?
Every month the Social Security Administration must undertake the enormous administrative challenge of distributing around 70 million payments to Americans. Social Security benefits are staggered across the month to ease the workload for the Social Security Administration, following a payment calendar the agency has established.
Because of how the payment schedule works, the first to see the increased benefit amount will be those who receive Supplement Support Income, a program for older Americans with limited resources and for certain disabled beneficiaries. Those payments will hit bank accounts on 30 December 2022. The rest of beneficiaries will see their boosted monthly deposits arrive during January 2023.
Social Security pay dates depend on date of birth
Birth date 1st – 10th - Second Wednesday of the month
Birth date 11th – 20th - Third Wednesday of the month
Birth date 21st – 31th - Fourth Wednesday of the month
Payments for Supplemental Security Income (SSI) are scheduled for the first day of the month, except when that falls on a Saturday, Sunday or national holiday. In these instances, the SSI payments will go out at the very end of the previous month.
For those who began receiving benefits before May 1997 or they are receiving both Social Security and Supplemental Security Income, they will be paid their Social Security benefits on the third of the month. Except as was the case in July 2022 when the third fell on a Sunday. As with Supplemental Security Income benefits, the payment date is moved up to the nearest business day, which was 1 July, the same day that Supplemental Security Income payments were issued.