Millions are set to receive the largest increase in Social Security benefits in over 40 years in 2023. Due to rising costs in everyday living connected to inflation and other factors, the Social Security Administration is upping benefits by 8.7 percent.
This would factor out to more than $140 per month starting in January, though it isn't a monumental amount for some beneficiaries. But this action was put in place to aid seniors and others to manage higher costs of daily goods, like food and fuel, in the face of economic hardships.
Today, Social Security recipients learned their checks are increasing an average of $140, meaning for the first time in a decade, Medicare premiums will decrease as Social Security checks increase.— President Biden (@POTUS) October 13, 2022
This helps seniors get ahead of inflation with a little extra breathing room.
This SSA boost will coincide with a three percent drop in Medicare Part B premiums, adding to the support for those who need the funds. "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," Social Security Administration Acting Commissioner Kilolo Kijakazi said in a statement.
According to ABC News, groups like AARP see the benefits increase as a "much needed relief to millions of Americans." The "crucial" cost-of-living increase is a welcome sight annually for these folks.
A daily reminder that if @SenSanders Social Security Expansion Act had been enacted last year, Elon Musk would have paid $2.9 billion more in taxes, seniors would have received $2,400 more in benefits and Social Security would be solvent for more than 75 years.— Warren Gunnels (@GunnelsWarren) October 13, 2022
The decision from the SSA comes only weeks before midterm elections, with both major parties duking it out over high prices, inflation, spending, and more. Of course, next year will hold more surprises and this elevated benefit will still have most people playing catch up with what was lost due to inflation. "[There are] already indications that healthcare inflation is going to be through the roof next year," William Arnone of the National Academy of Social Insurance said Thursday.
As ABC notes, around 70 million people, including retired people, disabled people, and children. The boost in benefits for 2023 will be the biggest increase baby boomers have ever seen, with the only time the benefit was higher coming in 1981 at 11.2 percent. Now those dealing with end-of-life planning have a little bit of breathing room, even if it is a tiny amount.