How COLA increases your payment by $92 each month

October 5, 2022 William Johnson Stimulus Check, US Local News 0

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Cost-of-living adjustment (COLA) payments are meant to offset recent inflation, according to the Social Security Administration.

SOCIAL Security and Supplemental Security Income benefits were increased for 2022, and most are expecting an even bigger boost in 2023.

The Social Security Administration is estimating that the number could rise by another eight percent next year, with an official announcement expected on October 13.

2022’s increase affected approximately 70 million Americans who rely on the benefits.

The 5.9 percent increase began in January 2022 for those collecting Social Security, and on December 30, 2021, for those collecting Supplemental Security Income (SSI).

This was the largest COLA increase in nearly 40 years.

When you’ll receive the monthly payments fluctuates based on your birthday.

When you’ll receive your Social Security payments

The Social Security Administration has released a 2022 schedule of benefit payments.

Social Security benefits will be released on a schedule according to the claimants’ date of birth.

Those with a birthday between the 1st and 10th of the month can expect their first payment on the second Wednesday of the month.

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The third Wednesday of the month is reserved for those with a birthday between the 11th and 20th.

Those with a birthday between the 21st and 31st can expect to receive their payment on the fourth Wednesday of the month.

This schedule holds steady through the 2022 calendar year.

How much extra you’ll get

The COLA payment increase is 5.9 percent, so depending on how much you typically receive each month in benefits, you’ll see a slight change.

For example, retirees who receive $1,565 per month will now get $1,657 in benefits, according to the Social Security Administration.

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For a retired couple who are both receiving benefits, the average monthly check will increase from $2,599 to $2,753 in the new year.

The adjustment was based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2020 through the third quarter of 2021.

This money should go towards food, gas, rent, utilities, and related costs.

Will Social Security claimants get more relief?

In addition to this year’s historic COLA boost, another big benefit boost could be in line for 2023.

The Social Security Administration is estimating that the number could rise by another eight percent next year, with an official announcement expected on October 13.

Despite 2022’s historic increase, it was not enough to keep up with the year’s raging inflation according to Mary Johnson, policy analyst at the Senior Citizens League.

“There was a big mismatch between the COLA and inflation in 2022. The 5.9% COLA that we received in 2022 was on average about 46% lower than what we otherwise needed to keep up with rising prices,” said Ms Johnson.

Social Security claimants are usually notified by mail starting in early December about the new year’s benefit amount.

However, there is likely no immediate relief for Social Security beneficiaries hoping for more cash.

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The Senior Citizens League, a non-partisan advocacy group, has been calling for a one-time $1,400 stimulus check for Social Security claimants.

Dozens of lawmakers have pushed for recurring stimulus payments, but any hope was sidelined when lawmakers focused on the Build Back Better Act.

The social spending plan stalled in Congress late last year.

Congress has since moved on to other issues and, currently, no talks about stimulus money are on the table.

It means Social Security claimants should not expect to get a $1,400 check.

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About William Johnson 263 Articles
Demystifying the world of finance is my mission. As a finance news writer with 7 years of experience, I've covered everything from breaking market news to in-depth analysis of industry trends. I'm here to keep you informed and empowered in your financial journey.