GOBankingRates

What Will the COLA Be in 2023 For Social Security?

Dmytro Zinkevych / Shutterstock.com

Social Security recipients will see a big boost to their monthly benefit checks in 2023. According to the Social Security Administration, the cost-of-living adjustment (COLA) will be 8.7% for fiscal year 2023 — the biggest increase since 1981.

Social Security: Why Not Everyone Will Get An 8.7% COLA Increase in 2023
Social Security: Women Get $354 Per Month Less Than Men – Here’s Why

Social Security bases the COLA on changes to the Consumer Price Index (CPI) each year to help offset rising prices due to inflation. The latest CPI report (released Nov. 10) shows that inflation is easing, but a 7.7% increase for the all-items index for the 12 months ending October means that many Americans, especially retirees, are still feeling the pinch.

According to a new GOBankingRates survey, 42% of Americans said rising food costs impacted their finances the most in 2022, while 24% said rising gas costs affected them the most. CPI data shows that food prices are up more than 10% this year while gas prices spiked 17.5%.

Forbes said an extra 8.7% will equate to an average added monthly benefit of $144 for individuals and $240 extra for couples filing jointly, as previously reported by GOBankingRates.

The COLA will begin in Jan. 2023 for about 65 million Social Security beneficiaries, says the SSA, and bigger payments to more than 7 million Supplemental Security Income (SSI) beneficiaries will begin on Dec. 30, 2022.

Retire Comfortably

Take Our Poll: Do You Think You Will Be Able To Retire at Age 65?

You can find out your new benefit amount by creating a free my Social Security account. You can also check your Social Security statement, change your address, report wages and more. In Dec., the SSA says that Social Security COLA notices will be available online to most beneficiaries in the message center of their my Social Security account. However, beneficiaries will still receive notices by mail unless they choose to opt out of receiving notices by mail that are available online.

More From GOBankingRates