Approximately 70 million Americans will receive am 8.7% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2023.
This inflation adjustment is intended to offset the higher costs-of-living encountered by beneficiaries. The increase is effective for payments received in January 2023 for retirement benefits. Increased payments to SSI beneficiaries will begin on December 30, 2022. The SSI Federal Payment Standard for 2022 will rise to $ 914/month for an individual and $1,371/month for a couple.
This is the largest annual percentage Cost of Living Adjustment (COLA) in benefits in over 40 years.
While the large benefit increase is welcome, it is likely to be significantly offset by inflation. However, seniors may also benefit from reduced Medicare premiums and revised income tax brackets in 2023.
Beneficiaries will be notified of their new Social Security and Medicare premium amounts in December.