Approximately 70 million Americans will see an 8.7% increase in their Social Security benefits and SSI payments in 2023.
On the WHOW Morning Show Thursday, Jack Myers with Social Security told Regional Radio the increase is due to the largest Cost of Living Adjustment (COLA) in decades.
The purpose of the COLA is to ensure that the purchasing power of Social Security and SSI benefits is not eroded by inflation. Myers explains the Federal benefit rates increase when the cost of living rises. The measurement of cost of living comes from the Department of Labor’s Consumer Price Index for Urban and Clerical Wage Earners (CPI-W).
When the Social Security COLA is announced, people often wonder about the Medicare Part B premium since it is deducted from the Social Security payment.
Myers points out Medicare announced that the standard Part B premium will be $164.90 in 2023 (down from 170.10 in 2022).
Myers stresses there is no need to call to check on this increase. Social Security will be mailing COLA notices throughout December, but the notice will be available within your mySocialSecurity message center in early December if you’d like to see it sooner. Your account had to have been established by 11/15/22 to get this year’s COLA notice within your Message Center.
If you missed that deadline, there are still many other advantages to having your account. Create one today at www.ssa.gov/myaccount. You can even sign up for text or e-mail alerts when a new notification arrives in your Message Center. Look for “Message Center Preferences” within your mySocialSecurity account to sign up for those alerts.
To learn more about the 2022 COLA, visit www.ssa.gov/cola.