The Biden administration announced that Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023.
On average, Social Security will see their benefit checks increase by more than $140 per month starting in January.
The 8.7 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022.
The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
“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. This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned,” said Commissioner Kilolo Kijakazi.
Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200 from $147,000.
Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount.
President Joe Biden wants to ramp up discretionary funding for the Social Security Administration in his proposed 2023 budget by $1.8 billion, for a total of $14.8 billion.
That’s about a 14% increase from funding levels enacted in 2021 for the government agency, which administers retirement, disability and survivor benefits for about 70 million Americans.
Biden also sought more money for Social Security last year, having proposed a 9.7% increase, or $14.2 billion total, for 2022, to help improve customer service amid the ongoing Covid-19 pandemic.
Biden has made it a key campaign theme — repeatedly asserting the national retirement program is “on the chopping block” if Republicans win back control of the House and Senate.
“Your Social Security you paid for your whole life is on the ballot,” said Biden, seizing on a proposal from GOP Sen. Rick Scott of Florida, who says Social Security should be up for reauthorization by Congress every five years.
Republican Sen. Ron Johnson of Wisconsin says the Social Security program should be subject to reauthorization annually, a move that could jeopardize the income of 70 million Americans.
Information about Medicare changes for 2023 is available at www.medicare.gov.
For Social Security beneficiaries enrolled in Medicare, their new higher 2023 benefit amount will be available in December.
The Social Security Act provides for how the COLA is calculated. To read more, visit www.ssa.gov/cola.