8.7% Social Security Benefit Increase

About 70 million Americans starting in January will receive a 8.7% boost to their Social Security Benefits. That will come out to an average of $140 per month.

These Benefits increase when the cost of living goes up. This is measured by the Consumer Price Index (CPI). The CPI will rise when inflation goes up, which of course causes the cost of goods and services to go higher. This 8.7% increase is designed to help offset these cost.

The good news is Medicare Premiums are going down from $170.10 to $164.90 and Social Security Benefits are going up for 2023. This means beneficiaries will be able to keep all or most of their COLA ( cost of living adjustment) increase, so that they can use it to help pay for inflation.

2023 marks a record high increase for individuals, but one should be prepared for future years not to be so high. If inflation does subside, the COLA will not increase as much and Medicare premiums may go up causing lost in buying power.