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How COLA Will Impact Social Security Disability In 2023

Social Security has a cost-of-living adjustment (COLA) that protects recipients from increasing prices. COLA covers all Social Security beneficiaries, including retirees, survivors, and those on disability.

Beginning in January 2023, people who are receiving Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) will receive an 8.7% increase in their benefits each month. High inflation has battered the US economy this year. Prices for food, medical care, utilities, and more have soared.

In December 2022, SSI and SSDI beneficiaries will get a COLA notice by mail detailing the new benefit amount they will receive. The Social Security Administration (SSA) estimates the average benefit will increase by $146 to $1,827 monthly next year. This means you could receive about $1,700 more annually. If you have questions about COLA or benefits, please contact an Illinois Social Security disability lawyer.

Larger Maximum Benefit For The Newly Retired

The formula for SS benefits is changed each year to account for wage changes. So, the new maximum SS benefit newly retired recipients can receive goes up each year. But the amount also depends on the age your retire and claim benefits.

Next year, newly retired workers who get the maximum benefit can receive up to $3,627 monthly. That figure goes down to $2,572 for people who apply for benefits at 62. It is $4,555 for people who retire at age 70.

Few Americans qualify for the maximum benefit. You must earn above the maximum salary subject to the payroll tax for a minimum of 35 years. That annual wage was $147,000. Just 6% of Americans made that money.

Will You Feel The COLA Increase Each Month?

About 50% of Americans who are at least 65 live in homes where SS benefits are at least 50% of their monthly income. The Census Bureau estimates that ¼ of them get 90% of their monthly income from SS. These Americans are often lower income and do not have retirement savings. For people who depend on Social Security to live, getting $146 more per month will not make a big difference.

Also, COLA does not account for the additional costs older Americans face as they age. For example, senior citizens often must spend a lot more of their income on healthcare. However, a silver lining is Medicare Part B premiums will go down to an average of $164 per month next year.

This is the first year in over 10 that Medicare premiums have not increased. It also shows the SSA can offer more financial support to those who need the benefits they have earned over their working lives.

Contact Our Illinois Social Security Disability Lawyer

Are you receiving SSDI and concerned about your benefits and the upcoming COLA adjustment? Speaking to an Illinois Social Security disability lawyer could provide peace of mind. Whether you live near 360 Chicago or the Riverwalk, getting more benefits every month can benefit you.

The SSDI lawyers at Harold W. Conick & Associates can assist with SSDI and SSI questions. Our attorneys serve the greater Chicago metropolitan area, including Illinois, Indiana, and Wisconsin. Please contact us today for a complimentary consultation about your SSDI case.