People who receive Social Security and Supplemental Security Income will receive an 8.7% cost of living increase in 2023. The average recipient will get about $140 more each month as a result.
This increase reflects the effects of rising prices on the Department of Labor’s Consumer Price Index.
How to determine your benefit amount
If you are receiving Social Security or SSI benefits, you should get a notice in the mail in early December that explains the new benefit amount you will receive. You can also view the COLA notice on the my Social Security website. While you are on the site, you can elect to receive a text or email when there is a new announcement from Social Security.
In addition to the COLA increase, the maximum amount of earnings subject to the Social Security tax will rise from $147,000 to $160,200. This change reflects higher average wages. Medicare premiums and deductibles will be decreasing in 2023 by a small amount.
How much will I get for SSDI?
Your lifetime average earnings determine your Social Security Disability benefit amount. If you are already receiving Social Security Disability benefits, the COLA adjustment will apply to your existing benefit amount. If you are not yet receiving benefits, you can check your Social Security Statement online or use an online benefits calculator. If you receive other government benefits, your Social Security Disability benefit may be lower because of that income.
Rising prices are particularly difficult for people on fixed incomes to contend with. The 2023 Social Security COLA increase should help.