Social Security Benefits Will Jump a Historic 8.7% in 2023

Between inflation and rising fuel prices, it’s no secret that your dollar isn’t going as far as it once did. Today, the Social Security Administration released a figure illustrating how far consumers’ purchasing power has decreased — and how it’s done so in record fashion.

The SSA announced that its annual cost-of-living adjustment, or COLA, is 8.7%. That’s the largest cost-of-living increase in more than 40 years. For most Social Security beneficiaries, this adjustment translates to an average of $140 or more per month starting in January, according to an SSA press release.

“Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room,” Kilolo Kijakazi, acting commissioner of the Social Security Administration, said in the press release.

What are COLAs and CPIs?

The Social Security Administration uses annual COLAs to increase, if necessary, its beneficiaries’ monthly payments to…

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This article was written by Cara Smith and originally published on www.nerdwallet.com