Update: The Deputy Commissioner of Communications for the Social Security Administration confirmed an 8.7% cost of living increase for 2023.
Social Security retirees and Social Security Disability recipients are in line for a historic cost-of-living-adjustment (COLA) in 2023, which is projected to surpass 2022’s 5.9% increase in benefits. The increase is expected to be formally announced on Thursday October 13, 2022.
This will be the largest rate increase since the rate adjustment in 1981. The COLA increase is determined by the Bureau of Labor Statistics (BLS)’ Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-W measures the changes in prices of a fixed market basket of goods and services purchased by urban wage earners and clerical workers. The annual COLA increase is announced in October and takes effect the following December.
The COLA increase for 2023 is projected by the Senior Citizens League to be 8.7% on the federal benefit rate. This would be the third consecutive year of COLA increases, following the 2.8% increase in benefits in 2020 and the 5.9% increase in benefits in 2022. These COLA increases are in response to the rising prices of goods and services.
Social Security Recipients: More Money for Retirees & the Disabled
Recipients of either Social Security retirement, Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) receive a cost-of-living adjustment (COLA) annually based upon the Consumer Price Index as measured by the United States Department of Labor. The average Social Security benefit is currently $1,461 per month. A 8.7% COLA would result in an average benefit of $1,575 per month in 2023. This would be the largest increase in average benefits since the rate adjustment in 1981. These rate increases will impact the SSI benefit amounts, SSDI benefit amounts, and those drawing on their Social Security retirement benefits.
Medicare Premiums and Deductible Decreased
According to the campaign website, “Joe Biden will reduce premiums for people with Medicare Part-B by $5.20 per month. This will benefit more than 25 million seniors and people with disabilities by lowering their premiums by more than $130 per year.” This is great news for seniors and the disabled who often have to make tough financial decisions.
This helps to confirm that everyone in the government understands that these individuals are a vital part of our society and wants to do whatever possible to help them. Medicare Part B premiums are to be decreased from $170.10 in 2022 to $164.90 in 2023. This decrease will help those with Medicare to afford their health care costs. The Biden administration is committed to ensuring that all Americans have access to quality health care, and this decrease in premiums is just one way they are making this a reality. Individuals can also look forward to a decrease in the annual deductible, from $233 to $226.
Impact on Future Retirees and Disability Applicants
For the millions of retirees and disability recipients who will experience the COLA, these increases mark the two largest annual benefit hikes in the last forty years. This is good news, as the COLA will provide a needed financial boost for those living on a fixed income. The COLA will result in an increase in benefits for those who are currently approved for disability or who have retired. The increase will also benefit those who are currently applying for SSDI or SSI.
The COLA is important for Social Security beneficiaries, as it helps to ensure that their benefits keep pace with the cost of living. The COLA is also important for the Social Security program, as it helps to ensure that the program remains solvent. The COLA and the increase in benefits are important reminders that Social Security is still here for retirees and disability recipients. These increases are also a testament to the importance of the Social Security program being able to assist citizens in retirement or in times of disability.
Applying for Disability Benefits or Retirement
If you are unable to work, for any reason, you should seek all avenues to financially protect you and your loved ones. Options for financial support include short-term disability benefits (SSI), State disability benefits, early retirement, or Social Security Disability benefits (SSDI) under Titles II or XVI of the Social Security Act. Shook and Stone’s disability experts and licensed attorneys have represented countless individuals across the country who were unable to return to full-time employment due to their physical or mental health.
Staff is available any hour of the day to aid if you find yourself unable to return to work. Waiting on a doctor’s opinion stating that you are unable to work could result in your being ineligible for the 2022 or 2023 cost-of-living adjustment. Shook and Stone is available 24/7 to provide their assistance on these matters, along with, any other disability matter and only employs licensed attorneys to represent individuals who are unable to work. Call us at (702) 570-0000 today do speak with our team about your claim and learn how we can help to make the process easy for you.