Social Security Payouts Have Highest Increase in Over 40 Years Cost-of-living increase of 8.7% will boost monthly payments and is aimed at helping Social Security’s 70 million recipients weather high inflation.
By Main Street Sentinel Staff
The Social Security Administration announced that its recipients will receive an 8.7% increase in payments averaging at $1,827 a month for 2023, reported CNN. This is the largest increase since 1981, and it is squarely aimed at helping approximately 70 million senior citizens tackle inflation.
In another rare event, Medicare premiums are slated to decrease, one of only four times since Medicare was created in 1965 creating what Mary Johnson, Social Security and Medicare policy analyst at The Senior Citizens League, called a “once-in-a-retirement event” where there is “a historically high COLA, and at the same time, Part B premiums are going down next year.”
Acting commissioner of the Social Security Administration, Kilolo Kijakazi, said that the combination of these two decreases “will give seniors some peace of mind and breathing room” as 37% of elderly men and 42% of elderly women depend on Social Security payments for at least half of their income.
While this increase is undoubtedly good news, it remains to be seen whether it will fully keep up with inflation and some experts would like to see Social Security payout increases tied to an index that specifically measures inflation affecting the elderly. The current metric instead reflects price changes for urban wage earners and clerical workers, which does not take into account the increased cost of healthcare for the elderly.