$140 average raise for Social Security recipients in the United States

$140 average raise for Social Security recipients in the United States

The Social Security Administration in the United States announced that there will be a cost of living adjustment of 8.7% for the year 2023. This figure represents an average increase of 140 dollars per month, as of January 2023 and that can be successively increased in the coming years.

As explained, the annual adjustment of the cost of living for Social Security is established by the increase in the consumer price index, which measures the rate of inflation in the United States. An indicator that has skyrocketed in recent months, especially in terms of food, housing, fuel, etc.

The COLA set for next year 2023 is the largest increase since the 1981 11.2% adjustment. With an 8.7% increase, this is how Social Security benefits would change:

The average monthly Social Security benefit goes from US$1,681 to US$1,827. That’s $1,752 more for the whole year. The average monthly benefit for a couple receiving benefits increases from $2,734 to $2,972, which is $2,856 more for the entire year. The maximum benefit for a person who applies for Social Security at what the program calls “full retirement age” (almost always 66 years old) is increased from US$3,345 to US$3,627 per month. That is, 3.84 dollars more for the whole year.

Although the increases appear to be welcome news for seniors hit hard by inflation, the figures are not entirely welcome. Many consider that it is an insufficient amount, due to the high cost of living in the country.