The first Social Security checks and bank deposits featuring the largest cost-of-living-adjustment in 40 years will start arriving in January 2023.
Theaverage retiree benefitis going up by $146 per month, to $1,827; while the average disability benefit is increasing by $119 per month, to $1,483. Recipients will also benefit from a 3% decrease in how much they'll owe each month on standard Medicare Part B premiums. Those are declining to $164.90 a month. Medicare Part B covers outpatient medical care, like regular visits to the doctor.
The 8.7% COLA increase is in response to the decades-high inflation that began to plague the U.S. economy in 2022. Social Security recipients will have benefited from timing, as well. The COLA measurement was officially taken in July, August and September, when 12-month inflation hit 9%, 8.6% and 8.5%, respectively. On Tuesday, the Bureau of Labor Statistics reported inflation for wage-earners fell to its lowest level in more than a year, landing at 7.1%.
How the COLA-adjusted payments will roll out
If recipients' birthdays fall between the 1st and the 10th of a given month, the payment will be received the second Wednesday of the month. So, anyone with a birthdate in this initial range can expect the first payment to land Jan. 11, according to the Social Security Administration.
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For recipients with birthdays between the 11th and the 20th of a given month, the payment will come on the third Wednesday of the month. This group can expect the first payment of the new year Jan. 18.
The remaining group will get the payment the fourth Wednesday of the month, meaning the first 2023 payment will come Jan. 25.
Supplemental Security Income (SSI) recipients will continue to receive their payments on the 1st.
Except for SSI payments, Social Security benefits remain taxable and tax brackets are also changing as a result of inflation. A Social Security recipient filing as an individual with total earnings — including anything received outside Social Security — between $25,000 and $34,000 may have to pay income tax on up to 50% of their Social Security benefits. If their income was greater than $34,000, they may have to pay taxes on 85% of their income. For joint tax filers, the 50% threshold starts between $32,000 and $44,000, and the 85% threshold begins at $44,000.
Rob Wile is a breaking business news reporter for NBC News Digital.
FAQs
Are we going to get an increase in your Social Security checks? ›
Social Security benefits and Supplemental Security Income (SSI) payments will increase by 8.7% in 2023. This is the annual cost-of-living adjustment (COLA) required by law. The increase will begin with benefits that Social Security beneficiaries receive in January 2023.
What is the Social Security payment schedule for 2023? ›If your birthday falls between the 11th and 20th of the month, your payment will be sent out on the third Wednesday of the month. If your birthday falls between the 21st and 31st of the month, your payment will be sent out on the fourth Wednesday of the month.
When can I expect my Social Security check? ›RSDI (Retirement, Survivors and Disability) also referred to as SSA Benefits. Since June 1997 SSA delivers recurring RSDI benefits on four days throughout the month on the 3rd of the month and on the second, third and fourth Wednesdays of the month.
Will I get 2 SSI checks this month? ›Last Updated: December 8, 2022
But when the first day of the month falls on the weekend or a Federal holiday, you receive your SSI payment on the last business day before the first day of the month. That means you may get two SSI payments in the same month.
Good news for seniors and the disabled: Automatic $1,200 stimulus payments for people receiving Social Security retirement, survivors or disability insurance benefits (SSDI), or Railroad Retirement Board (RRB) benefits, are scheduled to begin arriving this week.
Will there be a$ 200 a month increase in Social Security? ›Next year, when the Social Security Administration applies the 2023 Cost-of-living adjustment, that amount could grow by around $146 to $1,822 a month. This increase is short of the $200 some retirees had hoped to see their benefits rise by, as many seniors on a fixed income struggle to keep up with inflation.
Why did I get two Social Security checks this month? ›If you're receiving Social Security benefits, it's possible to occasionally receive two checks in the same month. In many cases, this is because you're receiving two separate benefit payments, or because a weekend or holiday fell on the day you would normally receive your benefit check.
Will I get my SSDI check early this month 2023? ›Your 2023 SSDI payments will come on the same day of the month as your 2022 payments. If, for example, you received your payments on the third Wednesday of the month in 2022, they'll still come on the third Wednesday of the month through 2023.
How do you get the $16728 Social Security bonus? ›Who is eligible for Social Security bonus? For every year that you delay claiming past full retirement age, your monthly benefits will get an 8% “bonus.” That amounts to a whopping 24% if you wait to file until age 70.
What is the projected increase for Social Security for 2023? ›Each year, Social Security bases the COLA on changes in the Consumer Price Index. For 2023, Social Security benefits and Supplemental Security Income (SSI) payments will increase by 8.7%. This means that more than 70 million Americans will see a change in their benefit payments.
Is Social Security getting a raise in September 2022? ›
The latest COLA is 8.7 percent for Social Security benefits and SSI payments. Social Security benefits will increase by 8.7 percent beginning with the December 2022 benefits, which are payable in January 2023. Federal SSI payment levels will also increase by 8.7 percent effective for payments made for January 2023.
What is the Social Security raise for October 2022? ›Since 1975, Social Security's general benefit increases have been based on increases in the cost of living, as measured by the Consumer Price Index. We call such increases Cost-Of-Living Adjustments, or COLAs. We determined an 8.7-percent COLA on October 13, 2022.
Is Social Security giving extra money this month August 2022? ›SSI payments receive the same cost-of-living adjustment as Social Security retirement benefits. For 2022, this amounted to a 5.9% boost in benefits. The formula for calculating the annual COLA is based on the CPI-W, a close relative to the more often-quoted CPI.