![]() Social Security was established in the 1930s, but Congress first increased Social Security payments in 1950, and continued to do so every few years for more than two decades, according to the SSA. The cost-of-living increase is purely a mathematical formula – though it wasn’t always that way, said National Academy of Social Insurance CEO William Arnone. Here’s a look at how the new COLA was calculated, how it will impact individuals receiving Social Security benefits and what problems those people might still face. The COLA for 2023 is the largest increase since 1981 – when inflation was even higher than it is today – and is the fourth-largest jump ever. ![]() The 8.7 percent cost-of-living increase to Social Security payments for 2023 will be the largest jump in more than 40 years. In a sign that the Federal Reserve’s efforts have not yet worked to puncture the elevated inflation rate, the Bureau of Labor Statistics also released its consumer price index for September on Thursday, showing prices rose 8.2 percent over the last year. To help cover the rising cost of food, housing, health care and other essentials, the Social Security Administration announced Thursday that beneficiaries would receive an 8.7-percent increase in their monthly payments. But last year, the increase was big, and this year it’s even bigger. When inflation is low - as it’s been over the past decade or so - those cost-of-living adjustments, or COLAs, have been fairly mild. Social Security recipients, most of whom are over age 65, have seen their payments increase almost every year for more than four decades to keep up with the cost of inflation. ![]() READ MORE: Social Security cost-of-living increase will help millions of kids and their caretakers To read more, please visit the 70 million Americans who receive Social Security, experts say the significant increase in benefits slated for 2023 is much-anticipated and much-welcomed. The Social Security Act provides for how the COLA is calculated. Final 2022 benefit amounts will be communicated to beneficiaries in December through the mailed COLA notice and my Social Security's Message Center. ![]() People may create or access their my Social Security account online at Information about Medicare changes for 2022, when announced, will be available at For Social Security beneficiaries receiving Medicare, Social Security will not be able to compute their new benefit amount until after the Medicare premium amounts for 2022 are announced. Most people who receive Social Security payments will be able to view their COLA notice online through their personal my Social Security account. Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $147,000 from $142,800. Some other adjustments that take effect in January of each year are based on the increase in average wages. The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics. (Note: some people receive both Social Security and SSI benefits). Increased payments to approximately 8 million SSI beneficiaries will begin on December 30, 2021. The 5.9 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 5.9 percent in 2022, the Social Security Administration announced today. Pennsylvania Legal Aid Network - Legal Aid Providers in PA.Open an IOLTA Account with a Platinum Leader Bank.PLAN Staff Affinity Groups and Professional Groups.Pennsylvania Legal Aid Network Excellence Awards.Reports on Grants and the Delivery of Legal Services.Pennsylvania Legal Aid Network Brochure.
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