The 2023 cost of living adjustment (COLA) increase is 8.7%, according to the Social Security Administration. The increase in the cost-of-living adjustment is about a $140 monthly benefit increase for the average retiree – or about $1,680 per year.
COLA increased by 5.9% in 2022.
Third quarter percentage increases of the previous year’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) determine COLA.
Here’s where to see how the COLA increase stacks up to this year’s Medicare premiums.
2023 COLA Effective and Payment Dates
Retired military veterans, VA rates for compensation and pension for disabled veterans and surviving families will be effective Dec. 1, 2022 and will be reflected on the first check to be paid on Dec. 30, 2022.
Social Security benefits will be effective beginning with December 2022 benefits, which are payable in January 2023.
Federal SSI payment levels will begin on Dec. 30, 2022.
COLA (Cost-of-Living Adjustments) affect the following individuals or areas:
Federal and state food and housing assistance programs
How COLA Is Determined
The Bureau of Labor Statistics’ Consumer Price Index (CPI-W) determines COLA increases. It is based on the percentage increase of the CPI-W from the third quarter of the previous year versus the current year’s third quarter (July, August and September).
Veterans who retire during the current calendar year will receive a temporary partial COLA because they already received a military pay raise in January.
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