New COLA Takes Effect

The big news for this year is an 8.7% bump in the Social Security COLA, which is the highest cost-of-living adjustment since the 11.2% jump in 1981. The 2023 COLA’s huge increase is due to the inflation rate’s going up, which is also the highest in 41 years.

According to the SSA, the average monthly Social Security check for all retirees has increased from $1,781 to an estimated $1,827. This means a gain of $146 a month. The new payment amount will be sent starting in January 2023. For anyone getting Supplemental Security Income (SSI), the increased payment began on December 30, 2022.

Here’s something you should keep in mind: The 8.7% COLA won’t apply to all Social Security beneficiaries. Some payment increases will be lower than 8.7%, and some will be higher due to multiple factors, such as when you sign up for Medicare and your primary insurance amount (PIA). You should have received a notice from the SSA providing details on new payment amounts.