This morning the Social Security Administration announced its cost-of-living adjustment (COLA) for the upcoming year. This annual adjustment is aimed towards helping people on Social Security disability or retirement benefits receive a fair monthly benefit as years go on and combat annual inflation.
The US Justice Department lists current annual inflation rates at 8.2% in the US, so this adjustment has been long awaited by millions of US citizens on Social Security benefits.
How Much Is COLA For 2023?
The SSA announced that its COLA adjustment for the upcoming year is 8.7%. The SSA estimates that the average American will receive $140 more in benefits per month starting in 2023.
This is the largest increase in recent history. At the same time, the Social Security Administration actively worked to lower Medicare premiums, which eases the burden of making ends meet for disability recipients. This is the first time in over a decade in which Medicare premiums decreased.
65 million Social Security disability and retirement beneficiaries will see their monthly payments increase in January 2023, and 7 million Supplemental Security Income (SSI) recipients will see their benefits increase in December 2023.
All Social Security beneficiaries will receive a letter in the mail in December 2022 regarding the change in their monthly benefits, but you can also log into your MySSA account to view your new benefit statement online.
How Much Will You Be Impacted By COLA?
The Social Security Administration included a chart that outlines a variety of recipients, average disability or retirement payments, and how much additional income they could expect to see in 2023 after an 8.7% COLA.
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Other Changes After COLA
There are other changes that affect Americans who may not be receiving Social Security disability or retirement yet. The maximum monthly Social Security disability payment increased by nearly $300, up to $3,627 per month.
This means that new Social Security disability applicants could receive up to $43,500 annually if approved.
Considering applying for Social Security disability benefits but not sure how much you’ll earn per month? Our Social Security Disability Calculator can help you determine how much you’ll receive from the SSA before you file for disability!
Consulting with a Social Security disability advocate or attorney can also give you a better understanding of the application process and the steps you need to take to successfully get the financial assistance you and your family deserves.
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