WASHINGTON (AP) — Millions of Social Security recipients will get an 8.7% boost in their benefits in 2023, a historic increase but a gain that will be eaten up in part by the higher cost of everyday living.
The cost-of living adjustment — the largest in more than 40 years — means the average recipient will receive more than $140 extra a month beginning in January, the Social Security Administration said Thursday.
While Social Security recipients welcomed the benefit increase, many said it wasn’t enough to cover the impact of inflation.
It’s” not much help,” said 85-year-old Shirley Parker, who lives in Chatham on Chicago’s South Side,
Home maintenance costs and high grocery prices are cutting steeply into her budget. “Food is ridiculous. I come out with a bag full of groceries — $50 — don’t have about 10 items,” she said.
The Social Security COLA was established to help seniors and other recipients manage the higher cost of food, fuel and other goods and services How well it does depends on what inflation does going forward.
In fact, a separate government report Thursday showed inflation newly accelerating,. The Consumer Price Index rose 0.4 percent for September after just 0.1 percent in August and is up 8.2 percent for the past 12 months. Jobless claims for unemployment benefits rose for the week.
The stock market opened lower.
The Social Security Administration said the estimated average monthly Social Security benefit for all retired workers will be $1,827 starting in January, according to an agency fact sheet.
The boost in Social Security benefits will be coupled with a 3% drop in Medicare Part B premiums, meaning retirees will get the full impact of Social Security increase.
“This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned,” said Social Security Administration’s Acting Commissioner Kilolo Kijakazi.
Colby Nelson, a spokesman for the AARP, said the benefits increase “will provide much needed relief to millions of Americans.” He called the annual cost-of-living increase “more crucial than ever as high inflation remains a problem for older Americans.”
U.S. Sen. Kirsten Gillibrand of New York issued this statement on the increase: “Today’s Social Security Administration announcement of an 8.7 percent increase in benefit checks, the largest increase since 1981, is fantastic news for more than 70 million Americans who are struggling with skyrocketing drug prices, prohibitive housing costs, and the rising cost of living. The larger Social Security checks will start hitting mailboxes in January 2023.
“As a member of the Senate Committee on Aging, I support strong cost-of-living adjustments because they help people keep up with recent increases in everyday expenses. Cost-of-living adjustments for Social Security benefits can provide crucial resources for retirees and other beneficiaries who depend on Social Security.
“I will also continue to champion the Social Security Expansion Act, which would ensure the solvency of Social Security for over 70 years by requiring the wealthiest among us to pay their fair share into the program, expand Social Security benefits across the board, and increase the cost-of-living adjustment.”
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https://dentoncountynewsonline.com/social-security-benefits-to-jump-by-8-7-next-year-evening-observer/
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