Approximately 70 million Americans will receive an 8.7% increase to their Social Security benefits beginning in 2023, according to a recent announcement from the Social Security Administration.
The cost-of-living adjustment (COLA) is the largest increase in four decades, topping a 5.9% increase in 2022. It comes as Americans continue to struggle with exceptionally high inflation.
As a law firm that’s fought for disabled and injured individuals across Georgia for over 45 years, our team at Affleck & Gordon knows many folks receiving Social Security have questions about the new cost-of-living adjustment and the impact on their benefits.
To help you better understand how it works, we’ve answered some common questions below.
What is a Cost-of-Living-Adjustment?
Every year, the Social Security Administration adjusts benefits paid to retirees, people with disabilities, and other qualifying beneficiaries to account for inflation. This annual cost-of-living-adjustment, or COLA, is computed based on the increase in the Consumer Price Index from the third quarter of the previous year through the third quarter of the current year.
While they may reflect larger issues within our economy, cost-of-living adjustments are generally a good thing for beneficiaries. They provide additional money to make up for a loss in purchasing power and in years such as these, can make a big difference.
What is the Social Security COLA for 2023?
Given the sizeable spike in inflation the U.S. economy has faced, the latest adjustment is significant, entitling beneficiaries to an 8.7% increase in benefits. On average, this amounts to an additional $140 per month.
Here’s an example of what estimated benefits payable before and after the 8.7% adjustment may look like:
- Disabled Worker, Spouse and One or More Children
- Before: $2,407
- After: $2,616
- All Disabled Workers
- Before: $1,364
- After: $1,483
- Aged Couple, Both Receiving Benefits
- Before: $2,734
- After: $2,972
- Widowed Mother and Two Children
- Before: $3,238
- After: $3,520
- Aged Widow(er) Alone
- Before: $1,567
- After: $1,704
- All Retired Workers
- Before: $1,681
- After: $1,827
Who Qualifies for Increased Social Security Benefits?
According to the SSA, over 70 million Americans will qualify for increased benefits thanks the new COLA. This includes people who receive:
- Social Security disability (SSD) benefits
- Supplemental Security Income (SSI) benefits
- Social Security retirement benefits
When Will Increased Benefits Begin?
Per the SSA, the 8.7% adjustment will begin with benefits payable to over 65 million beneficiaries in January 2023. Over 7 million SSI beneficiaries will receive increased payments beginning December 30, 2022.
How Can an SSD / SSI Lawyer Help?
As millions of Americans continue to battle inflation in their day-to-day lives, benefits like Social Security disability and Supplement Security Income are more important than ever. Unfortunately, the process can be quite complex, causing many to experience delays and denials in the processing of their claims.
At Affleck & Gordon, we’re dedicated exclusively to helping folks navigate the Social Security system, claims process, and appeals proceedings. We can review your situation, evaluate your eligibility, and guide you through the journey ahead. To speak with an attorney from our team, call (404) 990-3945 or contact us online. We serve clients throughout Georgia.