The Social Security Administration announced that the 8.7% cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022.
On average, Social Security benefits will increase by more than $140 per month.
The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
The Administration announced other adjustments that take effect in January are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200 from $147,000.
Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. People may also find out their information before then by creating or accessing an account online at www.ssa.gov/myaccount.
U.S. Senate Aging Committee member Senator Kirsten Gillibrand issued a statement on the cost-of-living increase, saying, “Today’s Social Security Administration announcement of an 8.7% increase in benefit checks, the largest increase since 1981, is fantastic news for more than 70 million Americans who are struggling with skyrocketing drug prices, prohibitive housing costs, and the rising cost of living.”