This is how much Social Security benefits could increase in 2023
September 23, 2022
According to many analysts, Social Security benefits for 2023 could see the biggest increase in four decades.
This year, Social Security’s cost-of-living adjustment, or COLA, was already a significant 5.9% — or about $93 a month. In June, however, the US Bureau of Labor Statistics reported that the consumer price index, the year-over-year change in the prices Americans pay for goods and services, was 9.1%.
In July it fell to 8.5% and according to the latest CPI figures it was only 8.3% in August. That’s good news for the economy, but it’s still 18 months in a row that inflation is well above the 2% target set by the Federal Reserve.
The adjustment for 2023, which will be announced sometime in October“will be one of the highest COLAs ever paid in the history of the program,” Mary Johnson, a policy analyst with the nonprofit Senior Citizens League, told the Detroit Free Press.
For more information about social securityto learn when the checks go outhow to access your benefits online and how benefits are calculated.
How Much Will Social Security Benefits Increase in 2023?
Social Security Administration will not disclose cost of living adjustment in 2023 until Octoberbut many experts expect an even greater increase than in 2022.
Forecasts have fluctuated widely: In June, the impartial Committee for a Responsible Federal Budget estimated Social Security benefits would rise as much as 10.8% to account for inflation, or nearly $180 in additional monthly benefits. The following month, Marc Goldwein, the organization’s senior policy director, tweeted that if inflation stayed on the current routethe increase would be 11.4% – even higher than the record 11.2% increase in 1981.
Richard Johnson, director of the Urban Institute’s retirement policy program, told AARP on Aug. 10 that “somewhere in the 9% range is probably a reasonable estimate.”
A 9% cost of living adjustment to Social Security by 2023 would add about $150 on average in monthly checks, or an additional $1,800 per year. And Munnell said it’s “very likely” that the benefits would increase by more than that.
Last month, the Senior Citizens League projected a COLA of 9.6% in 2023. However, with inflation data from August, the organization has revised its forecast to a more conservative 8.7%.
The average Social Security benefit is $1,657 per month — if the 8.7% increase is correct, that would add up to about $144 per month.
Aside from an eventual COLA increase, a bill before Congress could mean Social Security recipients will receive an additional $2,400 per year by 2023. Introduced by Rep. Peter DeFazio and Sen. Bernie Sanders, the Social Security Expansion Act would add $200 to every monthly check for anyone currently receiving benefits or turning 62 next year.
However, the measure has not progressed since its introduction in June.
When will I know what my Social Security benefits are for 2023?
The Bureau of Labor Statistics is scheduled to release inflation data for September on Oct. 13, and the Social Security Administration typically announces the cost-of-living adjustment soon after — the same day in some cases.
Beneficiaries must then receive letters stating their specific payout percentage. If you miss this letter, you can still verify your increase online via the My Social Security website. The COLA will take effect with December benefits, which will appear on checks received in January 2023.
When will I see the increase in my Social Security check?
Social Security benefits are paid on Wednesdays, according to a rollout schedule based on the beneficiary’s date of birth: If you were born from the 1st to the 10th of the month, your benefits are paid on the second Wednesday of the month.
If your birthday falls between the 11th and 20th of the month, your checks will be paid on the third Wednesday, and you’ll see your first COLA raise on your January 18th check.
Those born between the 21st and the end of the month will receive benefits on the fourth Wednesday, January 25, 2023.