A 60-second read by the Baron Team: The Social Security Administration (SSA) announced on Thursday, October 13, 2022, that it will be increasing Social Security (SS) and Supplemental Security Income (SSI) benefits by 8.7 percent in 2023. This is the highest increase in 41 years.
This cost-of-living adjustment (COLA) will begin for more than 65 million SS beneficiaries in January 2023 and for more than 7 million SSI beneficiaries, on December 30, 2022. Some people receive both Social Security and SSI benefits. According to the release: 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.
Notification: Beneficiaries can expect to be notified by mail starting in early December about their new benefit amount. Most SS beneficiaries will be able to view their COLA notice online through their personal my Social Security account. People may create or access their my Social Security account online at www.socialsecurity.gov/myaccount.
Medicare changes for 2023: The release goes on to say that Medicare changes, when announced, will be available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new higher 2023 benefit amount will be available in December through the mailed COLA notice and my Social Security's Message Center.
The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola.
Contact your Baron Team to learn how the Social Security increases can affect Your Personal Economy SM.
Disclosure: This is a general communication being provided for informational purposes only. This material is not intended to be relied upon as a forecast, research, tax or investment advice.