According to the Security Administration, beneficiaries of Social Security can anticipate an 8.7% increase in benefits in 2023.
The growth surpasses the cost-of-living adjustment for 2022, which was 5.9% at the time and the largest in forty years.
Social Security claimants can anticipate receiving the entire cost of living adjustment rise.
Before this year, the cost of Medicare Part B, the component of Medicare that covers physician and hospital outpatient services, ate up the annual adjustment.
The annual adjustment is determined by averaging the July, August, and September inflation readings among urban wage earners and office workers.
The benefit is that starting in 2023, Medicare Part B premiums automatically withdrawn from monthly Social Security checks will be $5.20 less per month, or $164.90.
Social Security benefits will automatically adjust for inflation for everybody who qualifies. That includes people who are 62 years old or older, who are disabled, or who are blind.
Their spouses, surviving spouses, and living dependents may occasionally be eligible to receive Social Security benefits.
The government declared that the maximum income subject to Social Security tax will rise by 9% to $160,200 in 2023 from this year's $147,000.
However, Johnson noted that the latest COLA rise would probably advance that date because it would cause the trust to lose more money.