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What will the Social Security increase be in January 2023?

Social Security benefits will increase by 8.7 percent beginning with the December 2022 benefits, which are payable in January 2023. Federal SSI payment levels will also increase by 8.7 percent effective for payments made for January 2023.

ssa.gov - Latest Cost-of-Living Adjustment - SSA

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What is a COLA?

Legislation enacted in 1973 provides for cost-of-living adjustments, or COLAs. With COLAs, Social Security and Supplemental Security Income (SSI) benefits keep pace with inflation. Latest COLA

The latest COLA is 8.7 percent for Social Security benefits and SSI payments. Social Security benefits will increase by 8.7 percent beginning with the December 2022 benefits, which are payable in January 2023. Federal SSI payment levels will also increase by 8.7 percent effective for payments made for January 2023. Because the normal SSI payment date is the first of the month and January 1 is a holiday, the SSI payments for January are always made at the end of the previous December. How is a COLA calculated?

The Social Security Act specifies a formula for determining each COLA. According to the formula, COLAs are based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). CPI-Ws are calculated on a monthly basis by the Bureau of Labor Statistics. A COLA effective for December of the current year is equal to the percentage increase (if any) in the CPI-W from the average for the third quarter of the current year to the average for the third quarter of the last year in which a COLA became effective. If there is an increase, it must be rounded to the nearest tenth of one percent. If there is no increase, or if the rounded increase is zero, there is no COLA for the year. COLA Computation The last year in which a COLA became effective was 2021. Therefore the law requires that we use the average CPI-W for the third quarter of 2021 as the base from which we measure the increase (if any) in the average CPI-W. The base average is 268.421, as shown in the table below. Also shown in the table below, the average CPI-W for the third quarter of 2022 is 291.901. Because this average exceeds 268.421 by 8.7 percent, the COLA effective for December 2022 is 8.7 percent. The COLA calculation, with the result rounded to the nearest one-tenth of one percent, is: (291.901 - 268.421) / 268.421 x 100 = 8.7 percent. CPI-W for— 2021 2022 July 267.789 292.219 August 268.387 291.629 September 269.086 291.854 Third quarter total 805.262 875.702 Average (rounded to the nearest 0.001) 268.421 291.901

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How Much Will Social Security checks go up in 2023?

8.7 percent Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023.

ssa.gov - Cost-of-Living Adjustment (COLA) Information for 2023 - SSA

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023. The 8.7 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022. (Note: some people receive both Social Security and SSI benefits) The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200. The earnings limit for workers who are younger than "full" retirement age (see Full Retirement Age Chart) will increase to $21,240. (We deduct $1 from benefits for each $2 earned over $21,240.) The earnings limit for people reaching their “full” retirement age in 2023 will increase to $56,520. (We deduct $1 from benefits for each $3 earned over $56,520 until the month the worker turns “full” retirement age.) There is no limit on earnings for workers who are "full" retirement age or older for the entire year.