Millions of Social Security recipients will get an 8.7% boost in their benefits in 2023, a historic increase and welcome news for American retirees.
By FATIMA HUSSEIN, Associated Press WASHINGTON — Millions of Social Security recipients will get an 8.7% boost in their benefits in 2023.
The Social Security Administration's Acting Commissioner Kilolo Kijakazi said combined with Medicare premiums going down in 2023, the Social Security benefit increase, “will give seniors more peace of mind and breathing room.” WHEN WILL THE BIGGER PAYMENTS BEGIN? January. They're also permanent, and they compound. That means the following year's percentage increase, whatever it ends up being, will be on top of the new, larger payment beneficiaries get after this most recent raise.WHAT'S THE TYPICAL INCREASE? Since 2000, it's averaged 2.3% as inflation remained remarkably tame through all kinds of economic swings.
Automatic annual cost-of-living adjustments didn't begin for Social Security until 1975, after a law passed in 1972 requiring them. The CPI-W, meanwhile, covers only about 29% of the U.S. population. It has been around longer than the CPI-U, which the government began compiling only after the legislation that required Social Security's annual increases be linked to inflation.
That in turn would mean a faster drain on Social Security's trust fund, which looks to run empty in a little more than a decade at its current pace. IF THE INCREASE IS BASED ON INFLATION IN URBAN AREAS, WILL PEOPLE IN RURAL AREAS GET THE SAME BOOST? Yes.
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