Cost-of-Living Adjustment for Social Security Recipients in 2023
To help with the ever-growing costs of inflation, the Social Security Administration has approved a cost-of-living adjustment to take place in 2023.
The COLA or Cost-Of-Living Adjustment, will benefit the recipients of Social Security disability and retirement benefits.
The SSA determined that the COLA for 2023 is 8.7%.
This means that in 2023, Social Security Disability (SSD), Supplemental Security Income (SSI) and Social Security Retirement recipients will see an increase in their monthly payments.
The reason for a COLA is to make sure the recipients of these benefits are not affected by inflation. The Social Security Administration determines a COLA by using the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is no increase, there will not be a COLA that year.
The 8.7% increase will raise benefits payable to more than 65 million Social Security beneficiaries in January 2023. More than 7 million SSI beneficiaries will begin receiving increased payments on December 30, 2022.
For individuals who are applying for SSD or SSI, there are important changes to SGA in 2023 as well. If you plan to work while applying for or receiving these benefits you may come across the word Substantial Gainful Activity (SGA). When someone is working as an employee, Social Security sets a limit on how much you can earn. In 2023, the monthly gross amount an individual can make is $1,470.00.
Although a COLA means recipient’s monthly payments will increase, it also means the cost of living has also increased. This means prices for goods and services have increased enough to affect the cost of living.
Recipients of these benefits will be notified in December 2022 of the changes to their benefits. You can find this information in the message center of your My Social Security Account. Letters will also be sent.
If you have applied for SSD or SSI benefits or are considering applying and have questions, contact the attorneys at Berger and Green today at 412-661-1400 for a free no obligation consultation. We can help you at any stage of the disability process. From filing an application, appealing a decision, or representing you at your hearing, Berger and Green is on your side.