Social Security Benefits Are Heading for the Biggest Increase in 40 Years

[question everything]

Social Security recipients are on track to receive the highest cost-of-living increase in more than four decades next year.

Social Security checks get an inflation adjustment every year based on the Consumer Price Index for Urban Wage Earners and Clerical Workers. In determining the cost of living adjustment, or COLA, the Social Security Administration compares the average figures for July, August and September to the index’s average level over the same period a year earlier.

The July data, disclosed Wednesday, rose 9.1% during the past 12 months. That is slightly higher than the headline inflation number, measured by the Consumer Price Index for All Urban Consumers, which recorded an 8.5% annual increase. The official Social Security COLA will be set following September’s data.

If inflation remains at the current level, on average, over the next two months, the approximately 70 million retirees and disabled people who receive Social Security benefits could see their monthly checks rise by about 9.6% in 2023, according to estimates from the nonprofit Senior Citizens League, which advocates for protecting and strengthening Social Security and Medicare benefits.

(snip)

The Social Security Administration won’t announce the official cost of living adjustment for 2023 until October. But today’s inflation data provides a strong clue as to what recipients might expect... With a COLA of 9.6%, the average monthly Social Security check for retired workers would rise by about $160 in 2023, to $1,829 in January from $1,669 this year.

(snip)

A June report by the trustees of Medicare’s trust funds projected that Part B premiums will remain stable at $170.10 a month in 2023. The report projects a slight decline in the monthly base premium for Part D prescription drug coverage, to $32.90 in 2023 from $33.37 this year.

More..

https://www.wsj.com/articles/social-security-benefits-are-heading-for-the-biggest-increase-in-40-years-11660138256 (subscription)

[Timewas]

1. Sure

Then they will do as they usually do and raise medicare part B by about the same as the so called raise..

[question everything]

4. As reported, last paragraph, Medicare will stay the same $170.10

[Timewas]

7. Hopefully

But being slightly cynical I will wait and see ...

[stopdiggin]

8. the last increase was no where NEAR wiped out in rising premiums

(spoken by someone that is looking at real figures for his own income and outlay this past fiscal) This coming benefit bump will dwarf that one - with premiums remaining roughly the same. You're cynicism is seemingly misplaced.

[PoindexterOglethorpe]

16. Nope. Medicare part B does NOT raise the same as the increase. At least not in my experience

since collecting Medicare since 2014. Yeah, some years since then we got zero increase, and once or twice the Medicare Part B increase was the same, but most years? No. My Social Security amount has increased a noticeable amount over the years.

I am truly sorry if SS is your only income, but it's hardly breaking news that it was NEVER intended to be the only source of income in later life. It was intended to be one leg of a three-legged stool. The other two legs were savings and a pension, which today would be a 401k.

[elleng]

2. Good, I guess; hope we all can afford it.

'If inflation remains at the current level, on average, over the next two months, the approximately 70 million retirees and disabled people who receive Social Security benefits could see their monthly checks rise by about 9.6% in 2023, according to estimates.' (MAY not happen, as ###s are now decreasing, aren't they?)

[TexLaProgressive]

3. So will Medicare Part B rise to take the extra.

In the 7 years we’ve been on SS and Medicare every SS COLA was close to exactly the rise in Medicare B premiums.

[question everything]

5. No. Read the last paragraph: will stay the same at $170.10

[TexLaProgressive]

6. That's a relief 😅

[stopdiggin]

9. not in my household

[Rebl2]

11. Me either

[PoindexterOglethorpe]

17. In the same 7 years I've been on SS and Medicare my COLA has mostly been less than

more than an increase in Medicare Part B. I am getting significantly more SS than I did back then.

Here's something people don't fully understand when they decide collecting SS at the soonest age possible is good. Each year's increase is a percentage of their current payout. So the higher the starting payout, the higher the increase will be. Over time, someone who collected later than the earliest age, benefits more and more.

[ShazzieB]

10. Woo-hoo, bring it on!

Mr. B needs to retire, and we need every dime we can get!

[YoshidaYui]

12. I know a happy Senior

Who will love this news.

[twodogsbarking]

13. I'll take anything. MFs shouldn't tax SS.

[wryter2000]

14. "Over the next two months"?

Like, before the November election?

People are furious about the overturn of Roe. Gas prices have come down. Inflation is on its way out. The Republicans are running maniacs. Nancy Pelosi said the other day she expects to keep the House. When Madam Speaker says something, I tend to believe it.

[Cheezoholic]

15. Next, stop taxing SS checks

Contrary to Reaganistic elitism, disabled and elderly Americans aren't free loaders, they already paid their unfair share