Social Security Benefits to See Largest Increase in Decades
COLA Increase of 8.7% to Take Effect in January
Millions of Retirees to Benefit from Increase
WASHINGTON, D.C. - Social Security and Supplemental Security Income (SSI) benefits will increase by 8.7% in 2023, the largest cost-of-living adjustment (COLA) in four decades. The increase will begin with benefits payable in January to more than 65 million Social Security beneficiaries. SSI recipients will also see an 8.7% increase in their monthly payments.
The COLA is calculated based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures changes in the cost of goods and services for urban wage earners. The 8.7% increase reflects the high inflation rates seen in recent months, driven by factors such as rising energy and food costs.
While the COLA will provide much-needed relief to retirees and other beneficiaries, it is also expected to push some over income thresholds that could impact their eligibility for other benefits such as Medicaid and Supplemental Nutrition Assistance Program (SNAP). The Social Security Administration estimates that about 1.3 million people will lose eligibility for Medicaid and 249,000 will lose SNAP benefits as a result of the COLA increase.
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