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Social Security benefits projected to increase 8.6 percent in 2023

Written by

Diane Archer

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Inflation is taking a huge toll on Americans. If there’s any silver lining, it’s that people receiving Social Security benefits should see their largest benefit increase in more than 40 years. CBSNews.org reports that Social Security benefits are projected to rise 8.6 percent in 2023; that said, Social Security benefits should increase far more.

How does the Social Security increase translate to dollars? It will mean about $142.60 more each month for the typical person on Social Security. The total average monthly check should rise to $1,800.

Since last April the Consumer Price Index is up about 8.3 percent. It’s up about 8.9 percent for urban wage earners and clerical workers, the CPI-W. Social Security bases its cost of living adjustment for older Americans on a somewhat different calculation.

Today, 69 million Americans receive Social Security benefits. This year they saw a 5.9 percent cost of living adjustment. That increase is lower than the overall cost of living increases typical older adults are facing. Older adults spend a lot more than younger people on health care.

Some of the Social Security benefit increase will go to the cost of the Medicare Part B premium, which is likely to increase next year. Last year, it rose 14.5 percent or a total of $21.60.

Then again, $11 of the increased Medicare Part B premium this year is attributable to the projected cost of Aduhelm. Since the Centers for Medicare and Medicaid Services ended up deciding not to cover Aduhelm except in rare instances, people are already spending $11 more in Medicare premiums than they should be.

Because Social Security checks do not keep up with the inflation older adults see, the value of their benefits is estimated to have eroded 40 percent. As a consequence, an increasing number of older adults and people with disabilities rely on food banks and food stamps. A better COLA index would be the CPI-E, which factors in rising health care costs more heavily.

Here’s more from Just Care:

Comments

3 responses to “Social Security benefits projected to increase 8.6 percent in 2023”

  1. BC Shelby Avatar
    BC Shelby

    …Medicare should be premium free for those on Social Security. It’s basically a “double dip” for seniors (who are often on tight budgets) people also pay into the programme during their working lives as well though payroll deductions for Medicare.

    Some states offer what are referred to as Medicare Savings Plans which cover the premium through Medicaid for those at or below the poverty line (those receiving far less than the average 1,600$ per month [my monthly benefit barely cracked in 1,000$ in 2021]). This also acts as a supplemental plan without the extra fees, restrictions, or conditions imposed. Unfortunately once a recipient passes the maximum earnings threshold set by the state, he or she loses this coverage and is required to pay the Medicare part B premium (that is likely to go up again), which seriously sets them back financially unless the living cost adjustment is fairly large.

    Also once ineligible people are back down to just parts A & B and must seek additional coverage through privately administered (for profit) Advantage plans which often have many restrictions along with higher out of pocket expenses (particularly for out of network treatment) and which overcharge the government billions each year for services.

    This is why we either need Universal Health Care like other nations have, or adopt Medicare For All so premiums could be dropped for Social Security recipients, many of whom today have only SS as their sole source of income.

    Reply
  2. Tom Avatar
    Tom

    The info listed above that states distributions must start at 70.5 is out of date and may scare people. It is linked to an article that was written in 2019. It has since been revised by the feds to age 72. Hopefully you can remove this ASAP – thanks – I’m a big fan of Diane and this newsletter!

    Reply
    1. Diane Archer Avatar
      Diane Archer

      Thank you! I am updating the blog post.

      Reply

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