The retirement or disability benefit in the United States cannot increase on a month-to-month basis. In contrast to workers’ wages, which can see an increase every month, Social Security payments do not increase. For that reason, the COLA announcement is always cause for Americans to celebrate. This increase in SSA benefits basically keeps retirees from losing purchasing power. Thus, the goal of this increase is not to make seniors richer, but to keep them from losing power. This is how Congress and the United States Government ensure that retirees can continue to pay their bills, rent and all monthly expenses.
Therefore, the COLA increase takes place once a year. This means that from January next year 2023 we will see an increase in subsidies and pensions. So we’ll have to wait a few more months for us to start collecting an additional 8.7%. However, it should also be remembered that the COLA also increases the payment of additional income from the collateral. So retirees collecting these two monthly contributions will see a significant increase this year 2022.
In this regard, the benefit payments will increase proportionately equally. So a benefit of $1,000 per month will increase to $1,087 per month. The average Social Security payment in 2022 is $1,666. Starting the next year 2023, the average benefit will be $1,810 per month. Therefore, the maximum Social Security payment from January 2023 will be $4,558 instead of $4,194 per month. This is a significant increase.
What do I have to do to receive the Social Security COLA?
All annual Social Security increases under COLA are automatic. For this reason, no SSA user needs to do anything to see an increase in monthly checks. The government is responsible for increasing each payment from next year.
Supplemental Security Income payments will also see this increase, so pay attention to any payments. And remember that Social Security benefit payments are made on the following days:
- 1st of the month. Supplemental Security Income payment.
- 2nd Wednesday of the month. Social Security payment for beneficiaries born between the 1st and 10th of the month.
- 3rd Wednesday of the month. SSA payment for beneficiaries with birthdays between the 11th and 20th of the month.
- 4th Wednesday of the month. The Social Security Administration sends payment on this day to people born between the 21st and 31st.
With this small calendar you have available the days on which you will receive your Social Security benefit. Remember that it may take up to 3 days to appear in your bank account if you have not activated Direct Deposit.