COLA is used to increase Social Security advantages each year. It is based on consumer price index data and takes into account inflation. The Social Security payment increase for 2022 was 5.9%, the biggest rise in years, due to inflation in 2021, but the increase for 2023 must be much greater.
A Rollout Plan Based On Birthday Dates
The yearly increment is applied to December benefits beginning with payments dated January 2023. A rollout plan for Social Security benefits is determined by the beneficiary’s birthdate. Your payments are provided on the 2nd Wednesday of the month if you were born between the first and tenth day of the month.
Your first COLA rise will occur on January 18, 2023, if your birthday is between November 11 and November 20, and your payment is deposited on the third Wednesday. Benefits are paid on the fourth of the month to pensioners birthed between the 21st and the final day of the month. In such a case, your initial raise would take effect on January 25, 2023.
Estimated Increase Of Social Security Benefits In 2023
The charitable Senior Citizens League reportedly estimated a COLA rise of 8.7% now that the August CPI is released. Even though such claims are less extravagant than those from earlier in the year, most claimants would still receive $144 each month.
However, that is one of the more conservative estimations. The increase would be between 8.9% and 9.5%, according to Alicia Munnell, director of Boston College’s Center for Retirement Research, in a Marketwatch article dated August 30.
Data from the Consumer Price Index, which measures the change in prices of goods and ser from one year to the next, are used to calculate the COLA for July, August, and September.
The US Bureau of Labor Statistics releases CPI statistics during the second week of every month. The government simultaneously disclosed the 2022 COLA rise and the September CPI last year. On October 13, if it holds this year, we would know how significant the Social Security benefit increases will be for the next year reports CNET.
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