According to the Washington Post (here), Social Security recipients will receive an 8.7% increase in their benefits for 2023. This is the largest increase since 1981, with today’s inflation report showing steady price increases from a year ago. The Social Security Administration will make payments with the increase right before January 1st.
Recent increases in the consumer price index mean that monthly benefits checks will grow by:Washington Post
• $146 for individual retired workers
• $238 for a retired couple
• $282 for those with children receiving survivors’ benefits
• $137 for those without children receiving survivors’ benefits
• $119 for disabled workers
I got a lousy 4.0% raise last year, and people are quitting my employer left and right. From this table from Social Security, the average retired worker has a monthly benefit of $1673.88, with spouses of retire workers getting an extra $831.81. This is a pittance, but for many retired people Social Security is the largest source of retirement income. The COLA increase will be welcomed.
When a loudmouth Republican politician wants to take away Social Security and Medicare for your grandma or grandpa, ask yourself, who benefits if Social Security and Medicare goes away? What is their motive? It certainly won’t be the retirees needing Social Security to live coming up with such dumb ideas.
This makes the coming I-Bond rate set change in November an even better value, if this increase foreshadows that one.