This year, there is an exceptional 8.7% boost in Social Security Cost-of-Living Adjustment (COLA), resulting in up to $140 extra per month for about 70 million Americans. That’s a significant increase that can make a big difference!
However, the SSI disability increase in 2023 may vary depending on income levels. For example, the 65 million Social Security beneficiaries will witness increased checks starting from January 2023, while 7 million Supplemental Security Income (SSI) beneficiaries will begin receiving checks as of December 30, 2022.
4 Fundamental Transformations In The SSI Increase 2023.
2023 will witness the most significant increase in Social Security benefits since 1981. Some of the crucial adjustments that the Social Security Administration (SSA) has outlined for the year 2023 are as follows:
- Increase in Cost-of-living adjustment (COLA),
- Rise in taxable earnings,
- Social Security benefits will go up,
- Working During Early Retirement affecting Benefits 2023.
Increase In Cost-Of-Living Adjustment (COLA)
Before 2023, the Social Security Administration (SSA) tied Cost of Living Adjustments (COLA) to the Consumer Price Index for urban wage earners and clerical workers (CPI-W). The SSA will compare the CPI-W of the previous year’s third quarter to the current year’s third quarter. The difference between these two CPI-Ws will determine the COLA adjustment.
| Worker’s Categories | Before 2023 Increase | After 2023 COLA Increase |
|---|---|---|
| Retired workers | $1,681 | $1,827 |
| Aged couple receiving disability benefits | $2,734 | $2,972 |
| Widowed spouse having 2 children | $3,238 | $3,520 |
| Aged widow/widower living alone | $1,567 | $1,704 |
| Disabled workers | $1,364 | $1,483 |
Source: Social Security Administration
Come 2023, the monthly fee for an individual will increase from $841 to $914 – a total of $73 – whereas couples will see their bills rise up to an astonishing figure of $1,371 per month; previously it was just under around $1,261.
Rise in taxable earnings
The taxable earnings will increase as there is a higher income. It is because the maximum earnings will rise from $147,000 in 2022 to $160,200 in 2023. Moreover, the adjustment will be based on the average wages prevailing in the United States.
Social Security benefits will go up
Individuals born in 1960 preparing to retire in 2023 will see an increase of their benefits from $3,345 to $3,627 if they reach the full retirement age- which is 67.Conversely, a reduction in benefits may occur should they not meet this requirement.
Working During Early Retirement affecting Benefits 2023
If you have not yet reached your full retirement age by the end of 2023, the Social Security Administration (SSA) will deduct $1 from benefits for every $2 earned above $21,240. Upon reaching full retirement age, SSA will deduct $1 from benefits for every $3 earned over $56,520.
How to calculate SSI disability increase in 2023?
Multiply your net Social Security benefit by 8.7%, and you will get an estimate of your 2023 Cost-of-Living Adjustment (COLA). To obtain a more accurate amount, you need to add your Medicare Part B premium to the net Social Security Disability benefit and multiply it by the 2023 COLA.
What is the reason behind the increase in Social Security?
As the cost-of-living continues to rise, so do Social Security recipients’ benefits. This increase, known as the Cost of Living Adjustment (COLA), is a result of rising consumer prices which have been exacerbated by the coronavirus pandemic. With this added financial boost, many individuals are now going to be able to better cope with these tough economic times.
It will enable retired workers and disabled people to be able to better cover their medical, housing and food expenses. It provides financial protection and security to those who need it most. Finally, the increase in Social Security Benefits COLA in 2023 will provide sustainability to current and future generations.
Social Security benefit increases for disabled workers and spouses in 2023:
|
Beneficiaries
|
Increase in Sizable benefits
|
|---|---|
| Widowed mother with two children | From $3,238 to $ 3,520 |
| Aging widows and widowers residing alone | From $1,567 to $ 1,704 |
| A disabled worker having one or more children and a spouse | From $2,407 to $ 2,616 |
Source: https://www.sssamiti.org/social-security-cola-2023/
The increase may vary depending upon the person’s circumstances. Those who rely on Social Security for the majority of their income may see a greater increase in benefits than those who only receive partial payments.
Additionally, the amount of money that Social Security recipients receive is also determined by their age, marital status, and the number of years they have been paying into the system.
How to determine the eligibility for SSI Increase 2023?
Each individual that is eligible for benefits will be informed by notice of their increase. If you want to know if you are qualified and how much more money your new benefit amount will provide, recipients can review the SSA website’s eligibility criteria or log into My Social Security Account to discover the details associated with your benefit update.
You can calculate your advantages and find out how much Supplemental Security Income (SSI) payments you will receive in 2023. To do so, you will need to note your current monthly SSI payment and add the COLA of 8.7%. The resulting amount is the estimated amount of benefits you are expected to receive in 2023.
If you have difficulty understanding the disability claim process, consult a disability lawyer. An attorney will help you to understand the process and ensure that your rights are protected. They will also ensure that you file your claim within the designated deadline. Contact us now for a free case consultation to learn more about the Social Security Benefits COLA in 2023 and how it affects you.
FAQs On SSI Increase 2023
Does Working Affect Eligibility for Disability for 2023?
If you are visually impaired in 2023, you may qualify for up to $2,460 each month; however those without any visual impairment will be eligible to receive no more than $1,470 per month. It is important to note that if your income surpasses these limits, you would be denied from receiving disability benefits.
Will there be a reduction in Medicare Premiums in 2023?
The Centers for Medicare & Medicaid Services (CMS) has announced that the Part B premium in 2023 will be $164.90, a decrease of $5.20 from the 2022 rate of $170.10—a reflection of decreased expenditures associated with recently developed Alzheimer’s medications.
What is a Cost-of-Living Adjustment (COLA)?
Cost-of-living adjustment (COLA) refers to an increase in income pay that depends on economic activity, thereby keeping up with the cost of living. Generally, COLA is applied to salaries, social security benefits, and retiree benefits.
The COLA is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) index, which measures changes in consumer prices. In addition, it is used to adjust social security benefits every year.