Social Security and SSI Benefit Amounts To Rise in 2023

If you currently receive Social Security or Supplemental Security Income (SSI) benefits, you'll soon have more money in your pocket each month. Benefit payment amounts will increase in 2023 thanks to the annual cost-of-living adjustment (COLA).

In this guide, we’ll explain:

• How the 2023 COLA was calculated
  
• Increased payment amounts for Social Security
• New SSI federal payment standards
• When you'll see the boost in your federal benefits
• Steps to take if you don't receive a COLA notice

Read on to learn how much extra you can expect from Social Security and SSI starting January 2023.

Social Security COLA Set at 8.7% for 2023 - 2024
Social Security benefits increase automatically each year through a COLA. The COLA for 2023 will be 8.7%, one of the highest boosts in decades.

The COLA applies to Social Security retirement, disability and survivors benefits. It's based on a formula using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

The CPI-W measures inflation and spending patterns. When costs rise, COLAs help preserve seniors' buying power. The 8.7% COLA offsets much of the recent inflation increase.

Higher Social Security Payment Amounts in 2023
Thanks to the generous 8.7% COLA, the average monthly Social Security benefit will rise by $140 to $1,827 in January 2023.

The maximum monthly Social Security benefit will increase $197 to $4,555 for those retiring at full retirement age in 2023. The exact dollar amount of your COLA will depend on your current benefit amount.

Higher earners may pay more in Medicare Part B premiums, which are deducted from Social Security checks. But most retirees will see a net gain.

SSI Federal Payment Amounts Also Rise
Supplemental Security Income (SSI) provides financial assistance to around 8 million seniors and people with disabilities.

SSI federal payment amounts will increase $73 per month for individuals and $110 for couples in 2023 due to the COLA. This boosts SSI to:

• $914 per month for eligible individuals
• $1,371 per month for eligible couples

Some states supplement the federal SSI payment. Notices will specify total amounts including any state contributions.

When You'll See the Bump in Your Social Security Benefit Amount
The Social Security Administration (SSA) will start mailing COLA notices in December 2022. This official letter shows your new 2023 benefit amount.

Most Social Security beneficiaries receive their COLA notice online through their personal my Social Security account message center.

Paper notices go out in waves starting with those who only receive SSI. All COLA communications should be completed by the end of January 2023.

The first COLA payments at the new 2023 rate will be paid in January. The increase is automatic -- there's no action required on your part.

You'll see the boost in your January 3rd Social Security deposit or January 1st SSI money transfer. Going forward, all 2023 payments will be at the new higher level.

What to Do If You Don't Get Your COLA Notice
If you normally receive a paper COLA letter but haven't gotten one by mid-January 2023, take action:

• Check your mailbox again in case it was delayed.
• Contact the SSA and request another notice be sent.
• Sign up for a my Social Security account to access it online if you haven't already.
• Call the SSA for benefit confirmation if needed.

You can also verify information by checking your Personal Benefits Statement via my Social Security. This breakdown includes your new 2023 to 2024 amount.

This substantial COLA will help Social Security and SSI recipients maintain their purchasing power in the face of high inflation. Review your notice carefully and make any necessary budget adjustments based on the updated amount.

We’re Here to Help
You do not have to spend hours reading articles on the internet to get answers to your Medicare questions. Give the licensed insurance agents at The Insurance Space a Call at (866) 717-8683. You will get the answers you seek in a matter of minutes, with no pressure and no sales pitch. We are truly here to help.

FAQS

How do I know if I'm eligible for supplemental security income (SSI)?  
 To be eligible for SSI, an individual must have limited income and resources and be either aged 65 or older, blind, or have a disability. The Social Security Administration (SSA) determines if you qualify based on your monthly countable income, living arrangements, and other eligibility requirements.

When will I receive my notice for the 2023 social security cost-of-living adjustment (COLA)?

Mail COLA notices throughout December 2022 notifying the 71 million Americans who receive social security benefits of their new benefit amount for 2023 payable starting in January. You can also check your expected COLA online using your my social security message center. 
How much will the maximum federal SSI payment be for an eligible individual in 2023?  

 Based on a 8.7% cost-of-living increase measured by the Department of Labor's Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), the estimated 2023 maximum monthly Federal SSI payment for an eligible individual will be $914, and $1,371 for an eligible individual with an eligible spouse.
I'm receiving social security disability benefits, how will the 2023 COLA affect my monthly amount?

Answer: If you receive social security disability benefits, your monthly payment amount will automatically increase beginning in January 2023 by the 8.7% COLA. This increase will be reflected in the payment you receive in the month of December 2022. 
How can I contact the SSA if I have additional questions about my 2023 benefits?

 You can contact the Social Security Administration by calling their toll-free number, 1-800-772-1213 or TTY 1-800-325-0778. Be sure to select the appropriate menu option when prompted to speak with a representative. You can also access their website at www.socialsecurity.gov for additional information and assistance available online.