Provided by Hannah News Service
Approximately 70 million Americans will receive an 8.7% increase in Social Security and Supplemental Security Income in 2023, the U.S. Social Security Administration announced Thursday.
On average, Social Security benefits will increase by more than $140 per month starting in January, according to a news release from the agency.
The 8.7% cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on Dec. 30, 2022. Some people receive both Social Security and SSI benefits.
The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the U.S. Department of Labor’s (DOL) Bureau of Labor Statistics (BLS).
U.S. Sen. Sherrod Brown (D-OH) -- chair of the U.S. Senate Finance Committee’s Subcommittee on Social Security, Pensions and Family Policy -- said SSA’s action represents the largest annual increase to Social Security benefits in 40 years.
According to SSA, some other adjustments that take effect in January of each year are based on the increase in average wages.
“Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200 from $147,000,” SSA said.