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Social Security benefits will increase by more than $140 per month on average in 2023 as a record cost-of-living adjustment of 8.7% kicks in.
The exact increase the estimated 70 million Americans who rely on the program for income will see will vary.
More than 65 million Social Security recipients will see their benefit checks increase in January, while more than 7 million Supplemental Security Income recipients will see higher payments beginning December 30.
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The average retiree benefit will increase by $146 per month to $1,827 in 2023 from $1,681 in 2022. Meanwhile, the average disability benefit will increase by $119 per month to $1,483 in 2023 from $1,364 in 2022.
Supplemental Security Income, or SSI, recipients will see the standard individual monthly payment increase $73 per month, to $914 per month in 2023 from $841 this year.
The Social Security Administration will provide notices in the coming months that include your new monthly benefit for 2023.
To find out exactly how much you can receive sooner, you can calculate the change yourself:
Multiply your net Social Security benefit by 8.7%, the 2023 cost-of-living adjustment.
To get the most accurate reading, add your Medicare Part B premium to your net Social Security benefit and then multiply that sum by the 2023 COLA, recommends Joe Elsasser, an Omaha, Nebraska-based certified financial planner and founder and President of Covisum, a Social Security claim software provider.
That’s in contrast to other years, when it would generally be more appropriate to deduct your Medicare Part B premium, Elsasser said.
Premium payments for Medicare Part B, which covers outpatient care, generally come directly from Social Security benefit checks.
Those premiums will be about 3% lower in 2023, with the standard monthly premium dropping $5.20 per month to $164.90 in 2023 from $170.10 in 2022.
Those with higher incomes, based on tax returns from two years prior, will pay more than the standard monthly rate.
Those income-related adjustment amounts in 2023 will start at $97,000 for single filers and $194,000 for married couples filing jointly.