Social Security COLA 2023 benefits are rising 8.7% — Here's When You'll See it In Your Checks

The cost of living adjustment, or COLA, is determined by the adjustment of inflation between the second from last quarter of the previous year and of the ongoing year - - in this case, July-September 2021 versus July-September 2022.

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The 2023 increase is equivalent to an additional $145 in the normal month-to-month Social Security check, according to the nonprofit gathering AARP.

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"Social Security is the largest source of retirement income for most Americans and provides essentially all income for one in four seniors," AARP President Jo Ann Jenkins said in a statement.

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"The reliable benefits given by Social Security, including the yearly COLA, are more significant than any time in recent memory as high inflation remains an issue for more established Americans," Jenkins added.

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Since 1975, Social Security benefits have been adjusted automatically and consistently based on increases in the cost of living.

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The 2023 COLA goes into impact with December 2022 benefits, which will show up in checks sent out in January 2023.

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Beneficiaries should get letters during that time of December detailing their specific benefit rate for the new year. Assuming that you miss this letter, you can still check your increase online through the My Social Security website..

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The 8.7% increase reported for 2023 is the largest since 1981, when it was 11.2%.

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Since yearly programmed COLAs were first introduced in 1975, they've risen above 7% just five times.

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While the 8.7% increase does mirror a 41-year high, the 2022 COLA was 5.9% and inflation crested at 9.1% in June.

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