Millions of Social Security recipients will get an 8.7% boost in their benefits in 2023.
The historic increase was announced this morning. The news was a pleasant announcement for American retirees and others, but it’s tempered by the fact that it’s fueled by high inflation that’s raised the cost of everyday living for all Americans.
The cost-of-living adjustment means the average recipient will receive more than $140 extra a month beginning in January, according to estimates released Thursday by the Social Security Administration.
The Social Security COLA benefits are the biggest in 40 years and will be accompanied by a 3% drop in Medicare Part B premiums. This means retirees will get the full impact of the jump in Social Security benefits.
However, a separate government report showed inflation newly accelerating, there is a trend that shows Social Security gains for older people. The Consumer Price Index rose 0.4 percent for September after just 0.1 percent in August and is up 8.2 percent for the past 12 months. Jobless claims for unemployment benefits rose for the week.
The Social Security announcement came just weeks before the midterm elections, and at a time when both political parties are talking about high prices now and how best to shore up the program financially in the future.
Last month, President Joe Biden has pledged to protect both Social Security and Medicare. “I’ll make them stronger, and I’ll lower your cost to be able to keep them.”
A report shows there are 70 million people including retirees, disabled people, and children receive Social Security benefits. This will be the biggest increase in benefits that baby boomers, those born between the years 1946 and 1964, have ever seen.