The latest cost-of-living adjustment or COLA for Social Security benefits and SSI payments is 8.7% in 2023. It will be the biggest benefit increase since 1981.

The Social Security Administration adjusts payments annually based on the inflation rate. Seniors lost purchasing power this year when the COLA was at 5.9%, which is well below this year's rise in prices, CBS News reported.

Four out of 10 seniors said they drained their emergency savings to stay afloat this year, according to the Senior Citizens League. Senior Citizen's League's Social Security and Medicare policy analyst, Mary Johnson, noted that when seniors lose buying power, they are exhausting other retirement resources, like savings.

Johnson added that seniors might also be putting more on credit cards or turning to safety net programs. She also said seniors or retirees have just been through a period where they are trying to cope and manage.

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Will COLA 2023 Be Enough?

There is a recurring question with the COLA 2023 hike, with beneficiaries worrying whether the increase will be enough for January 2023. COLA 2022 has reportedly been proven insufficient to address the beneficiaries' needs.

The Senior Citizens League's research found that even as a 5.9% COLA went into effect in January, the previous record-high annual benefit increase was still lacking.

Johnson noted that with the record-high inflation, even the simplest food was harder to afford. In 2023, the average retiree benefit will increase by $146 per month, resulting in $1,827 compared to $1,681 in 2022.

Johnson said COLA 2023 will boost the seniors' benefits by a record amount, adding that it would be the biggest one most retirees alive today have ever received.

It was projected that retirees will likely say goodbye to most of their historic COLA in 2023. It was also projected that even with a 9.6% COLA, there would be no guarantee that next year's benefits hike would fully offset inflation.

Social Security Payments

More than 65 million Social Security benefits recipients will see an increase in their benefits checks this January, while more than seven million Supplemental Security Income beneficiaries can see an increase in their payouts as early as December 30.

All retired workers receiving Social Security benefits in 2023 will receive a $1,827 check. For couples both receiving benefits, they will receive $2,972. A widowed mother and two children will receive $3,520 in 2023, while a widower without any children will get $1,704.

Disabled workers with a spouse and one or more children will receive a check worth $2,616, while all disabled workers are set to see their payout worth $1,483 in 2023.

Individuals receiving SSI payments will see their checks increase to $914 in 2023 compared to 2022's $841. A couple receiving SSI will get $1,371 per month.

The Social Security Administration has already been sending beneficiaries notices regarding their new monthly benefit for 2023.

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This article is owned by Latin Post.

Written by: Mary Webber

WATCH: Social Security Benefits Increase in 2023 - From U.S. Social Security Administration