Will Social Security recipients get an extra $200 a month in 2023?
The 8.7 percent COLA for Social Security benefits will provide a historic boost in value. Could the increase reach $200?
In October, the average monthly benefit for Social Security recipients was $1,676.53. Next year, when the Social Security Administration applies the 2023 Cost-of-living adjustment, that amount could grow by around $146 to $1,822 a month.
This increase is short of the $200 some retirees had hoped to see their benefits rise by, as many seniors on a fixed income struggle to keep up with inflation.
What is the 2023 COLA for Social Secuirty?
Across the board, all who receive Social Security benefits will see an increase of 8.7 percent, including spouses, children, and survivors of deceased workers.
The same applies to those who receive Social Security Disability Insurance and Supplemental Security Income.
How much will Social Security, Disability Insurance, and Supplemental Security Income benefits increase in 2023?
|Program||Beneficiary||2022 October Benefit Amount||2023 Expected Benefit Amount|
|Social Security||Retired Workers||$1,676.53||$1822.38|
|Spouse of Retired Workers||$831.54||$903.88|
|Children of Retired Workers||$787.29||$855.78|
|Disability Insurance||Disabled Workers||$1,364.41||$1,483.11|
|Spouses of Disabled Workers||$376.44||$409.19|
|Children of Disabled Workers||$431.70||$469.25|
|Supplemental Security Income||18 and under||$730.87||$794.45|
|18 - 65||$661.35||$718.88|
|65 and older||$510.19||$554.57|
Which beneficiaries will see the largest average increase?
Retired workers, who receive Social Security benefits, are far and away the beneficiaries likely to see the largest increase to their benefit amount when the 2023 COLA is applied. This is no surprise since retired workers receive the largest benefits, to begin with. Similarly, disabled workers eligible for Disability Insurance will see the second-largest increase, ticking up an estimated $119.
For some, however, this nearly nine-point bump will not be enough to keep them out of poverty.
The President of the National Council on Aging (NCOA), Ramsey Alwin, called attention to the issues many seniors face, noting that “People age 65+ are the only group for which poverty increased last year, according to the U.S. Census Bureau.” While a step in the right direction, Alwin believes that many seniors, particularly those of color and women, are likely to struggle to keep up with housing and healthcare costs.
In part, these groups struggle more than other workers because “many of them had low wages throughout their working lives, which means they have lower Social Security benefits.” According to the organization, one in four seniors who receive benefits “depend on it for 90% of their income.” This high level of dependence means that many lack wiggle room in their monthly budget and inflation can quickly cut into their purchasing power.
The NCOA is not the only senior rights organization worried about the increasingly harmful impact inflation has on seniors. Justice in Aging has also reported that around forty-five percent of seniors struggle to meet their basic needs. These organizations and others hope to raise awareness about the risks the country’s oldest residents face as they age and how this threat will grow, considering low levels of retirement savings for low-income workers.