The year 2022 is almost upon us and that means changes are coming to Social Security. This is something that all United States residents know, as the COLA is ever present for subsidy checks.
For next year the COLA increase in Social Security will be record high. The largest increase in Social Security benefits in the last 40 years. In total, the percentage amounts to 8.7%. This means that a $1,000 benefit, for example, will go to $1,087.
Thanks to this type of annual increase, pensioners, whether at retirement age or because of disability, do not lose purchasing power. Ultimately, this COLA increase is intended to do just that. It is not intended to make pensioners have a larger monthly amount of money.
With the 8.7% COLA increase, retirees will be able to effectively combat inflation. In any case, it is true that inflation continues to rise in most areas, so next year the increase in Social Security checksmay not be enough.
As all help is little, the fact that the increase in benefit checks seems insufficient is not so important in this case. What is important is that action has been taken. Soon retirees will receive this increase in checks.
What do I have to do to receive the COLA in Social Security?
The Social Security Administration will add the proportionate amount to each check before mailing it. This means that in order to receive the COLA, you are not required to do anything else. If we already have an accepted SSA benefit, we will automatically see the amount grow for the next check.
Each and every Social Security check will increase by 8.7% starting January 2023. So, we don’t have to worry about whether or not we will receive the COLA, as it is automated and will show up in the amount.
And this increase in check money is not just for retirement and disability benefits. In addition to these payments, the Social Security Administration will add an additional 8.7% to Supplemental Security Income checks.
The first check with the 2023 COLA will be in 2022
The first of the checks that will have the 8.7% of the 2023 COLA increase will not exactly be in 2023. Due to a timing irregularity, the payment pertaining to the January 2023 Supplemental Security Income will be made in December 2022.
While it is true that the payment belongs to next year, in the current year we will see this payment and many users will be able to receive it before it is New Year’s Eve. In order to have it on the same day, remember to activate Direct Deposit.