Retirees are getting the largest increase in Social Security payments in decades.
Back in October, Social Security announced an 8.7% cost of living adjustment – this is to deal with the rising inflation during the Biden administration.
Social Security on Thursday announced an 8.7 percent cost of living adjustment for retirees, the largest inflation adjustment to benefits in four decades — a welcome development for millions of older Americans struggling to keep up with fast-rising living costs.
The cost-of-living adjustment for 2023, which will be applied to benefits in January, is based on the latest government inflation figures. The final COLA, as the adjustment is known, was released after the Labor Department announced the Consumer Price Index for September, which came in at 8.2 percent. Medicare enrollees can anticipate some additional good news: The standard Part B premium, which is typically deducted from Social Security benefits, will decline next year.
The COLA, one of Social Security’s most valuable features, will give a significant boost to about 70 million Americans next year. While retirement comes to mind when most people think about Social Security, the program plays a much broader role in providing economic security.
The increase is now coming.
The payments will be rolled out based on the beneficiaries’ birthdays.
People who receive Supplemental Security Income (SSI), will receive two payments in December this year. Since the last day of December is a Saturday, the SSA wants to make sure people who depend on the checks, which are usually paid on the 1st of each month, aren’t forced to wait until the first business day in January.
As for Social Security recipients, not everyone will see the higher payments hit their bank accounts at the same time.
The SSA rolls out payments based on beneficiaries’ birthdays.
If you were born between the 1st and 10th day of the month, you’ll receive your check on the second Wednesday of each month. If your birthday falls between the 11th and the 20th, you’ll receive it on the third Wednesday. Any other date and you’ll receive your check on the fourth Wednesday of the month.
Meanwhile, the Biden administration is failing to stop rising inflation.
Inflation is still at its highest level since the early 1980s.