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Social Security benefits to jump by 8.7% next year
A man shops at a supermarket on Wednesday, July 27, 2022, in New York. On Thursday, Oct. 13, 2022, the U.S. government is set to announce what's virtually certain to be the largest increase in Social Security benefits in 40 years. The boost is meant to allow beneficiaries to keep up with inflation, and plenty of controversy surrounds the move. (AP Photo/Andres Kudacki)
WASHINGTON (AP) — Millions of Social Security recipients will get an 8.7% boost in their benefits in 2023.
That’s a historic increase and welcome news for American retirees and others — but it’s tempered by the fact that it’s fueled by record high inflation that’s raised the cost of everyday living.
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 boost in benefits will be coupled with a 3% drop in Medicare Part B premiums, meaning retirees will get the full impact of the jump in Social Security benefits.
The Social Security Administration's Acting Commissioner Kilolo Kijakazi said combined with Medicare premiums going down in 2023, the Social Security benefit increase, “will give seniors more peace of mind and breathing room.”
"This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned,” she said.
An older customer pushes his Kroger shopping cart laden with purchases in Jackson, Miss., Wednesday, Oct. 12, 2022. Millions of Social Security recipients will soon learn just how high a boost they’ll get in their benefits next year. The increase will be announced Thursday morning. (AP Photo/Rogelio V. Solis)
An older customer walks home after shopping in Jackson, Miss., Wednesday, Oct. 12, 2022. Millions of Social Security recipients will soon learn just how high a boost they’ll get in their benefits next year. The increase will be announced Thursday morning. (AP Photo/Rogelio V. Solis)
US Social Security Administration office is seen in Mount Prospect, Ill., Wednesday, Oct. 12, 2022. Millions of Social Security recipients will soon learn just how high a boost they’ll get in their benefits next year. The increase will be announced Thursday. (AP Photo/Nam Y. Huh)
A Social Security card is displayed on Oct. 12, 2021, in Tigard, Ore. Millions of Social Security recipients will soon learn just how high a boost they'll get in their benefits next year. The increase to be announced on Thursday, Oct. 13, 2022, expected to be the highest in 40 years, is fueled by record high inflation and is meant to help cover the higher cost of food, fuel and other goods and services(AP Photo/Jenny Kane)
