Social Security Benefits in 2023— Here’s How Much You’ll Receive!

In 2023, the Social Security’s 8.7% cost-of-living adjustment (COLA) is the largest yet in 41 years. Find out how much you can receive!

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In 2023, Social Security beneficiaries will be receiving the largest cost-of-living adjustment (COLA) yet in 41 years. After four decades of rising inflation, the COLA has finally risen to 8.7%. It is the biggest increase in the monthly payments since 1982. For around 66 million Social Security beneficiaries, the 8.7% COLA will increase the monthly payments they will receive by over $100.

According to Williams, in November 2022, the average monthly payments received by beneficiaries was $1,551.66. However, in January 2023, these average monthly payments increased to approximately $1,688.69. In estimation, the increase is $20,264 every year or 49% more than the federal poverty level for an individual in 2023.

The Social Security was signed into law in 1935. This was intended to provide financial assistance to retired workers, surviving beneficiaries of deceased workers, and workers with disabilities. As of November 2022, 51.2 million beneficiaries have already received retirement benefits and 5.9 million have received the survivor benefits. On the other hand, 8.9 million beneficiaries have already received the disability benefits.

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What is COLA?

According to Williams, COLA is the increase in benefits the beneficiaries receive. It takes into account the inflation or the rising price of goods and services. This means that if the cost to maintain a specific standard of living rises, Social Security benefits must also increase by the same amount. COLA is the system that allows the monthly benefits to adjust its increases to the pace of the rate of inflation.

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