SSI Payments Schedule: Here's Why You'll Be Getting Your COLA Increase This December Instead of January 2023

Social Security and Supplemental Security Income (SSI) recipients will see an increase in their benefits expected to be 8.7% for a cost of living adjustment (COLA).

However, while most will get their first check in January, the recipients of SSI COLA will get their first increased payment in December. The COLA sees changes in consumer prices year to year and is applied to benefit amounts.

There is a reason why SSI recipients will see increases in their respective checks in December, while SNAP benefits beneficiaries have already experienced the COLA increase.

The main reason why recipients will be getting an increase in their December SSI payments is mainly due to the SSI payments schedule.

SSI payments schedule is usually on the first of each month. However, payments would not arrive on the first day of any month if the regular payment date falls on a holiday or a weekend.

SSI recipients will get a payment on December 30 with their new benefit amount. There will be no increase with their December 1 checks as the COLA increases are not applied until 2023. However, January 1 is a holiday, which means the first 2023 payment will be distributed early.

SSI COLA Increase

SSI is different from traditional Social Security benefits. For one, it is funded by the general U.S. tax revenue.

In addition, it is a program that provides monthly payments to adults and children with disability or blindness who have income and resources below specific financial limits. SSI payments are also for people aged 65 and older without disabilities.

The maximum federal payment to an individual SSI recipient is set to increase to $914 per month from its previous $841. On the other hand, couples receiving SSI payments will receive $1,371 from $1,261.

People getting SSI payments are under different income limits. The "countable income" for the 2023 federal payment standard should not exceed $914 for a single person and $1,371 for a couple, according to an AARP fact sheet.

The Social Security COLA boost of 8.7% is considered to be the highest increase in 40 years.

SSI Payments

In 1981, the COLA was recorded to be higher when the increase was 11.2%. Cristina Martin Firvida, vice president of government affairs at AARP, said it was good news for older Americans, noting that with COLA going up, their Medicare premiums are going down.

Meanwhile, the record-high COLA increase may have an effect on Social Security's funds. In June, the Social Security Board of Trustees said the agency can pay full benefits through 2035.

The board estimated at that time that the program will be able to pay 80% of benefits. Benefits do not necessarily increase every year. In 2009, there was a 5.8% recorded increase, but the following years had 0% increases.

Director of government relations and policy at the National Committee to Preserve Social Security and Medicare, Dan Adcock, said COLAs try to provide inflation protection so that people can retain their standard of living.

The 2023 COLA increase comes as recipients have faced challenges with the skyrocketing prices of basic goods this year.

This article is owned by Latin Post.

Written by: Mary Webber

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