Xavierarnau | E+ | Getty Images
Social Security benefits will increase by more than $140 per month on average in 2023, as a record 8.7% cost-of-living adjustment takes effect.
The exact amount of increase the roughly 70 million Americans who depend on the program for their income will see will vary.
More than 65 million Social Security recipients will see their benefit checks increase in January, while more than 7 million Supplemental Security Income recipients will see larger payments starting Dec. 30.
Learn more about personal finance:
IRS: Here are the new tax brackets for 2023
How much you can earn and still pay 0% capital gains tax in 2023
IRS increases estate tax exclusion to $12.92 million for 2023
The average retiree benefit will increase by $146 per month, from $1,681 in 2022 to $1,827 in 2023. Meanwhile, the average disability benefit will increase by $119 per month, from $1,364 in 2022 to $1,483 in 2023.
Recipients of Supplemental Security Income, or SSI, will see the standard individual monthly payment increase by $73 per month, to $914 per month in 2023, from $841 this year.
The Social Security Administration will provide notices in the coming months that will include your new monthly benefit for 2023.
To find out exactly how much you are likely to receive sooner, you can calculate the change yourself:
Multiply your net Social Security benefit by 8.7%, the 2023 cost of living adjustment.
To get the most accurate reading, add your Medicare Part B premium to your net Social Security benefit, then multiply that sum by the 2023 COLA, recommends Joe Elsasser, a certified financial planner based in Omaha, Nebraska and founder and president of Covisum. , a provider of social security reporting software.
This contrasts with other years, where it would generally be more appropriate to deduct your premium for Medicare Part B instead, Elsasser said.
Premium payments for Medicare Part B, which covers outpatient care, typically come directly from Social Security benefit checks.
These bonuses will be about 3% less in 2023the standard monthly premium increasing from $5.20 per month to $164.90 in 2023 from $170.10 in 2022.
Those with higher incomes, based on tax returns for the previous two years, will pay more than the standard monthly rate.
These income-related adjustment amounts in 2023 will start at $97,000 for single filers and $194,000 for married couples filing jointly.