There have been many COLA estimates throughout this year 2022 due to the large increase in inflation in the United States. The Social SecurityAdministration already knows how much it will have to increase its beneficiaries’ checks for next year. The exact COLA figure for the year 2023 will be 8’7%. Many media and experts assured that it would be close to 10%, and it is not a lie, but it will not increase that much.
Many experts said and assured that 9% would be the key number in this COLA increase in 2023. And this group has indeed been close to the final number. This is good news for all Social Security users because 8’7% is a remarkable increase in all benefits. Any of the financial benefits that the Administration has available. For that reason, any kind of increase related to SSA is very good news. In this case, it is important to focus on the increase in retirement and disability benefits.
These two benefits are the main ones and the ones that will see the largest increase. On average, that increase is $140 per month. This is the average increase, meaning that not all Social Security beneficiaries will receive an increase of $140 per month. The increase is by percentage, so each user will get a different increase depending on his or her current benefit. A person with a benefit of $4,194 will receive around $4558 per month as of January 2024. On the other hand, the user who gets a $1,000 benefit may have $1,087 per month from January next year.
Who will receive the Social Security COLA in 2023?
This is another question among Social Security users. Many Americans are wondering what needs to be done to start collecting that COLA increase in SSA benefits starting in 2023. You do not have to do anything specifically to receive this increase. The Social Security Administration will do the calculation automatically and send the appropriate money to each beneficiary.
Therefore, all users of Social Security Administration benefits and subsidies will receive this new increase. To start collecting the new check, you will only have to wait until January. Therefore, the October, November and December checks will continue to have the same amount as they have had up to now. You will not see the increase until the end of 2022 and the beginning of 2023.
The downside of the 2023 COLA increase
Within the good news of an increase in the amount of Social Security benefit money, there is also a downside. For many beneficiaries, this increase could mean exceeding the taxable limit. As a result, some retirees will have to pay taxes they didn’t pay before.
If you are not sure whether you will have to pay taxes or not, contact a specialist attorney to explain your case. This way you will be sure to eliminate unpleasant surprises in your financial stability.