Social Security recipients to receive 8.7% COLA benefit increase

Social Security recipients struggling with higher inflation will get a larger 8.7% COLA increase in their monthly benefits starting January 1, 2023.

Social Security recipients struggling with higher inflation get a major boost in their monthly benefits starting next year. The agency announced an 8.7% cost of living increase for 2023 on Thursday.

The adjustment represents the largest one-time increase since 1981, and the largest experienced by beneficiaries alive today. The increase that took effect this year was 5.9%.

The increase will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million Supplemental Security Income beneficiaries will begin Dec. 30, 2022, the agency said. 

Gas prices fall below $4 but housing, food prices continue to climbAug. 11, 202202:40The annual adjustment is calculated by averaging inflation readings among urban wage earners and clerical workers from July, August and September. Annual inflation readings in those months came in at approximately 8.5%, 8.3%, and 8.2%.

Thanks to an unusual quirk, Social Security beneficiaries can expect to realize the full cost of living adjustment increase. In previous years, the annual adjustment was eaten up by increases in the cost of Medicare Part B, the unit of Medicare that pays for doctor and hospital outpatient services.

https://www.nbcnews.com/business/consumer/social-security-cola-increase-how-much-when-rcna42622

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