Social Security Update: The Biggest Benefit Increase In Almost 40 years Will Go Into Effect In Few Days

By the end of December, the biggest increase in Social Security & Supplemental Security Income (SSI) benefits will be implemented. The cost-of-living adjustment (COLA) will result in the greatest monthly benefits increase since 1981, an 8.7% rise in Social Security and SSI claimants’ monthly income. According to the Social Security Administration, the enhanced benefits will commence for over 7 mil lion SSI beneficiaries on December 30 and for above 65 million recipients of Social Security in January 2023.

Purpose Of COLA To Protect Social Security

The purpose of COLAs is to protect Social Security & SSI benefits from being reduced over time by inflation. As a component of the 1972 Social Security Amendments, Congress approved the COLA provision, enabling automatic annual payment increases to start in 1975. The SSA’s largest COLA was passed in July 1980, when beneficiary payouts rose by 14.3%. Only in the years 2010, 2011 & 2016 was the COLA 0%.

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SSI users will get $914 as their payment for January 2023 on December 30 thanks to the increase in payments. SSI subscribers received a reimbursement of $841 on December 1; the COLA made the payout for December 30 greater.

The Rising Cost Of Living

Couples and other dependents who get SSI assistance will also have their benefits increase to match the rising cost of living. Next year, eligible couples will see an increase in their monthly payments from $1,261 to $1,371, whilst essential persons—those who live with SSI users and provide necessary care—would see an increase in their monthly benefits from $421 to $458 in 2023 reports Gazette.

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