The cost-of-living adjustment, or COLA, will increase to 8.7% in 2023, according to the Social Security Administration. This is the largest increase in over four decades.
On average, Social Security benefits will increase by more than $140 per month starting in January with the typical payment jumping from $1,681 to $1,827.
“This may be the first and possibly the last time that beneficiaries today receive a COLA this high,” said Mary Johnson, an analyst who tracks COLA for the Senior Citizens League, a nonpartisan advocacy group for retirees.
Social security provides benefits for about 9 million disabled workers and their dependents, also 6 million widows, widowers and children, with the latter known as “survivors benefits.”
“The COLA is one of the most valuable features of Social Security by helping seniors and people with disabilities keep up with expenses and ensuring they don’t fall into poverty as they age,” said Kathleen Romig, a senior policy analyst at the Center for Budget and Policy Priorities. “The COLA is easy to take for granted in years with low inflation, but this year illustrates how vital it is.”
