Starting in January, many senior citizens and Social Security recipients will receive a higher monthly benefit due to the 8.7% annual cost-of-living adjustment, CNN reports on December 30, 2022.
Due to the record high inflation rate, Social Security beneficiaries will receive an 8.7% increase to their benefits this year, according to an article published by CNBC on October 13, 2022. This marks the highest increase in benefits in the past four decades and is designed to help these individuals cope with high inflation.
As a result of the adjustment, which was announced by the Social Security Administration on October 13 of the year 2022, approximately 70 million people will see their monthly payments increase by more than $140, bringing the average payment for 2023 to around $1,827. This follows the 5.9% adjustment that was implemented for the previous year.
This significant increase in benefits is a welcomed relief for many Social Security recipients, who rely on this financial assistance to cover their basic needs and expenses.
In fact, for 37% of male beneficiaries and 42% of female beneficiaries over the age of 65, Social Security makes up at least half of their income. For an even larger percentage of seniors, Social Security represents 90% or more of their income, with 12% of men and 15% of women falling into this category. These statistics are based on the article published by National Council on Aging on July 15, 2022.