Social Security Payments: Who's Eligible to Get $3,520 in 2023 Benefits?

Social Security recipients will see an 8.7% increase in 2023 in their checks due to the cost-of-living adjustment (COLA).

More than 65 million Social Security recipients will experience the adjusted amount in their checks in January next year, while more than seven million Supplemental Security Income beneficiaries will start to see the increased amount on December 30, 2022.

Social Security COLA notices will be available online to most beneficiaries upon checking their My Social Security account. The Social Security Administration considers it a secure and convenient way to receive COLA notices online.

The earning limits for workers younger than the "full" retirement age will increase to $21,240. People reaching their "full" retirement age in 2023 will see an increase in earning limit of $56,520.

Social Security Payments

The Social Security Administration has broke down to different groups for how the COLA increase will affect their payments.

Retirees will see an average monthly increase by about $146 to $1,827 in 2023 from $1,681 this year. Workers with disabilities will have an average monthly increase by $119, from $1,364 to $1,483.

Senior couple, who are both receiving benefits, will see an increase of a $238 average COLA boost to $2,972. Widowers receiving Social Security benefits will see an increase of $137 to $1,704 per month.

A widowed parent with two children will see an average monthly increase of $282 to $3,520. Most recipients get their Social Security benefits on Wednesdays, following a rollout schedule that depends on the beneficiary's birthdate.

Social Security Benefits

Mary Johnson, the Social Security and Medicare policy analyst for The Senior Citizens League, said beneficiaries will pay less next year on monthly premiums for Medicare's Part B plan.

Medicare premiums are deducted directly from millions of older individuals' monthly benefits. Johnson noted that low-income households will still struggle with high prices since the cost-of-living increase will not completely alleviate that.

However, she added that the increase in payments will still help people, especially with the cost of heating increasing as winter approaches, PBS News Hour reported.

National Academy of Social Insurance CEO William Arnone noted that older people are much more likely to spend the money than save it.

Arnone described Social Security benefits as "a one-size-fits-all solution." However, he noted that people's real needs differ based on geography, race, age, and other population variations.

Arnone said COLA is calculated based on the consumer price index for workers, which does not always reflect how older people spend their money.

The Center for Retirement Research at Boston College found that out-of-pocket medical costs, including premiums, cost-sharing, and uncovered services, leave only 75% of Social Security benefits available for other expenses for retirees.

The research concluded that retirees' income goes to medical costs due to premiums for Medicare Parts B, which are rising. Other components for retirees' biggest share of medical spending include retiree healthcare insurance, Medicare Advantage, and supplemental plans.

This article is owned by Latin Post.

Written by: Mary Webber

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