Jan 3, 2023 - Economy
Increased Social Security payments start rolling out
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The largest Social Security payment increase in more than 40 years has arrived and will roll out to beneficiaries throughout January.
Why it matters: The 8.7% increase is the biggest jump in benefits since 1981 and an average of an additional $140 per month starting in January, according to the Social Security Administration.
The big picture: The Social Security Administration uses a formula involving the consumer price index to calculate the annual cost-of-living adjustment (COLA).
- The adjustments are meant to ensure that monthly social security checks aren’t eaten away by inflation, Axios’ Courtenay Brown and Neil Irwin explain.
- Social Security and Supplemental Security Income (SSI) benefits increased for approximately 70 million Americans, the administration said.
When Social Security increase starts
Here’s the schedule from the Social Security Administration on when the increased payments are set to arrive:
- Dec. 30: January Supplemental Security Income (SSI) payments for more than 7 million beneficiaries were paid.
- Jan. 3: Social Security is paid on the third of each month if you received benefits before May 1997 or if you get both Social Security and SSI.
- Jan. 11: Social Security payments for those with birthdays between the first and 10th, get paid on the second Wednesday of the month.
- Jan. 18: Social Security payments for birthdays between the 11th and 20th, get paid on the third Wednesday.
- Jan. 25: Social Security payments for birthdays between the 21st and 31st, get paid on the fourth Wednesday.
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