Social Security 2023: What to expect from benefits in New Year

Millions of Americans will see a rise in the amount they receive in Social Security benefits starting in January.

That’s thanks to an 8.7 percent cost-of-living adjustment (COLA)—the biggest in more than 40 years—that was announced by the Social Security Administration (SSA) in October.

Social Security and Supplemental Security Income (SSI) benefits will go up by an average of $140 a month from January, according to the SSA.

When Do the Increased Payments Start?

Those who receive SSI benefits will be receiving their January payment on December 30, 2022.

For most months of the year, SSI recipients get their payments on the first day of the month, but when that falls on the weekend or a federal holiday, they will receive it on the last business day prior to the first day of the month. Since January 1, 2023, is a Sunday and December 31, 2022, is a Saturday, the January payment will be issued on Friday, December 30.

“We do this to avoid putting you at a financial disadvantage and make sure that you don’t have to wait beyond the first of the month to get your payment,” the SSA states on its website.

“It does not mean that you are receiving a duplicate payment in the previous month, so you do not need to contact us to report the second payment.”

However, Social Security payments are sent out based on the recipient’s birthday, so not everyone will receive it on the same day.

Those born between the 1st and 10th of the month will have their benefits paid on the second Wednesday of the month—so they will receive their first payment with the 2023 COLA adjustment on January 11.

Those with birthdays between the 11th and 20th of the month will receive their payment on the third Wednesday of the month, so their first increased payment will be paid on January 18, 2023.

And those with birth dates between the 21st and 31st of the month will receive their payment on the fourth Wednesday of the month, so January 25, 2023.

However, those who received Social Security before May 1997 or who receive both Social Security and SSI benefits will receive their Social Security payment on the third day of the month, so January 3. They will receive their SSI payments on the first of the month, except when that falls on a weekend or federal holiday.

Why Is the COLA So High?

Rising inflation sent the 2023 COLA to its highest rate since 1981.

The figure is calculated using the average inflation in a year’s third quarter based on the Consumer Price Index for Urban Wage Earners and Clerical Workers.

Payments that include the 2023 COLA will be going out to more than 65 million eligible Social Security recipients and more than seven million SSI beneficiaries, the SSA said.

Teresa Ghilarducci, a professor of economics at The New School for Social Research who focuses on retirement security, previously told Newsweek that the COLA “is so high this year because the third-quarter inflation rate was unusually high.”

The increase in benefits “intends to help Social Security recipients maintain their living standards despite the increase in prices,” Ghilarducci said.