The Social Security payments are usually adjusted annually based on inflation to ensure that rising prices don’t erode the purchasing power of retirement benefits. This cost-of-living adjustment, also known as COLA, keeps up with inflation through a government measure of consumer prices for a range of household services and goods.

About 70 million Social Security and Supplemental Security Income recipients are impacted by the COLA. In fact, this year will bring some significant changes to Social Security, many of them related to the biggest COLA in more than 40 years. The new cost-of-living adjustment will impact payments to those getting Social Security, but it won’t be the only change in 2023.

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