First and foremost, let’s explain what COLA stands for and its importance. COLA is basically the cost-of-living adjustments. It was in 1973 when the USA legislated to deal with inflation and created COLA. In this way, any Social Security benefit, as well as Supplemental Security Income benefits keep up with the rising inflation. The main aim is to have the same purchasing power throughout the years. Otherwise, we would become poorer and poorer.
It is the Social Security Act the one that gives us the way to determine COLA whenever necessary. They pay attention to the prices of goods and services. This is the Consumer Price Index for Urban and Wage Earners and Clerical Workers. For short, CPI-W. These CPI-Ws are regularly checked. They need to calculate it every month indeed.
The latest update for COLA to Social Security payments will take place in January 2023. SS beneficiaries will receive an 8.7% increase. It will be for both, the Social Security beneficiaries and the Supplemental Security Income. According to the Social Security, there are about 70 million American citizens that can benefit from the rise. Therefore, it will be a relief for many people who are suffering the effects of inflation in the USA this year.
When will beneficiaries receive the next updated payment for SSI or Social Security benefits?
Not surprisingly, this payment needs to be done before January 1. This is because January 1 is a holiday and Supplemental Security Income needs to be done the previous weekday. So at the end of the previous December, you will receive this payment. Social Security announced it on October 13. The Social Security Administration will inform you about this adjustment. It is true most beneficiaries will get a letter, but some might not get it.
If you have not received a letter from SS to inform you about the COLA in your benefit, do not worry. It is normal because they send it next month. You can get it throughout the month of December. If you do not want to continue waiting for the letter, or you do not receive it, you can check it online. If you sign in, you can have access to that information and much more.
All you need to have is a my social security account. It might be the case that you have never used it. Remember that it costs nothing, it has plenty of useful tools to customize your search. If you want to replace your Social Security card, you can do that too. When you apply for something, you can check its progress. Perhaps you want to see the approximate amount of a future benefit or manage the ones you have.