U.S. Social Security COLA Increase of 8.7% for 2023 and Medicare Premium Decrease for 2023

[Pib]

The SSA announced 13 Oct 2022/today that the Social Security increase for 2023 will be 8.7%...the highest since 1981.  This COLA increase will also be mirrored in most other U.S. govt pensions like military retirement pension.   See below SSA news release.   

 

AND, in a separate, earlier announcement the CMS Medicare agency announced Medicare Part B premiums will go down by about $5 in 2023...click this Link to see that earlier Medicare premiums announcement.    So no one should complain their SS pension increase will be partially or totally eaten-up by a Medicare premium increase.

 

 

SSA COLA for 2023 Announcement

https://www.ssa.gov/news/press/releases/2022/?utm_content=pressrelease&utm_medium=email&utm_source=govdelivery#10-2022-2

 

Thursday, October 13, 2022
For Immediate Release

 

Social Security Announces 8.7 Percent Benefit Increase for 2023
 

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023, the Social Security Administration announced today. On average, Social Security benefits will increase by more than $140 per month starting in January.

 

The 8.7 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

 

“Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room. This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned,” Acting Commissioner Kilolo Kijakazi said.

 

To view a COLA message from Acting Commissioner Kijakazi, please visit www.youtube.com/watch?v=Vgm5q4YT1AM.

 

Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200 from $147,000.

 

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. The fastest way to find out their new benefit amount is to access their personal my Social Security account to view the COLA notice online. It’s secure, easy, and people find out before the mail arrives. People can also opt to receive a text or email alert when there is a new message from Social Security--such as their COLA notice--waiting for them, rather than receiving a letter in the mail. People may create or access their my Social Security account online at www.ssa.gov/myaccount.

 

Information about Medicare changes for 2023 is available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new higher 2023 benefit amount will be available in December through the mailed COLA notice and my Social Security's Message Center.

The Social Security Act provides for how the COLA is calculated. To read more, please visit www.ssa.gov/cola.

NOTE TO CORRESPONDENTS: Here is a fact sheet showing the effect of the various automatic adjustments.

 

Edited October 13, 2022 by Pib

[ThailandRyan]

Now if that would just roll-over to a regular pensioners pension who does not collect SS.  I mean we do all live in the same world with inflation being global and the economies taking it in the shorts.

[Iamfalang]

Stock Market is crashing!!!

Inflation at 40 year highs!!!

Housing Prices crashing!!!

Housing Rent at like 2000 USD a month!!!

Gas is crazy, food is crazy, it's crazy!!!!

 

But COLA up 8.7% is better than nothing.....

 

 

[ThailandRyan]

1 minute ago, Iamfalang said:

Stock Market is crashing!!!

Inflation at 40 year highs!!!

Housing Prices crashing!!!

Housing Rent at like 2000 USD a month!!!

Gas is crazy, food is crazy, it's crazy!!!!

 

But COLA up 8.7% is better than nothing.....

 

 

Able to stay ahead of the bread and cheese line with that 8.7%  I remember as a youngster my best friends family on food stamps, getting food from the church and standing in the line when they handed out the processed cheese blocks and powdered milk.....his mother made great grilled  cheese sandwiches and macaroni & cheese, but I would never want to see anyone live like that.

[Pib]

Here some history on SS COLA increases. 

 

Now below chart displays the COLA year a little differently than the COLA announcement by reflecting the COLA year referenced to start 1 Dec of each year when the increase starts being earned and then payment occurs the following Jan.   Example: the COLA 2023 announcement of 8.7% is shown as 2022 in the chart. 

 

 

https://www.ssa.gov/oact/cola/colaseries.html

[gamb00ler]

If the IRS doesn't raise the income limits (unchanged since '84) they use to determine taxation of SSA benefits many taxpayers will be giving back quite a bit of the COLA increase as income tax.  The US government should at least simplify the rules used.

 

You can see the financial maze one must navigate to figure out one's taxable portion of SSA benefits here: --> https://thismatter.com/money/tax/social-security-benefits-taxation.htm

[Pib]

Here's is CNN's news article on the COLA increase.

 

https://us.cnn.com/2022/10/13/business/money/social-security-cost-of-living-adjustment-cola-increase/index.html

[Pib]

And here's a FoxNews news article on the COLA increase....snapshot of a historical chart in the article shown below.

 

https://www.foxbusiness.com/money/social-security-recipients-see-biggest-cola-increase-1981

[connda]

2 hours ago, Pib said:

The SSA announced 13 Oct 2022/today that the Social Security increase for 2023 will be 8.7%

Whoo Hoo!  Between that and the USD/THB exchange rate?  2023 may be a good year economically.

[connda]

2 hours ago, ThailandRyan said:

Able to stay ahead of the bread and cheese line with that 8.7%

In the US.  For those of us out in rural Nowhereville, it's a nice bump.

[mania]

11 hours ago, gamb00ler said:

If the IRS doesn't raise the income limits (unchanged since '84) they use to determine taxation of SSA benefits many taxpayers will be giving back quite a bit of the COLA increase as income tax.  The US government should at least simplify the rules used.

 

You can see the financial maze one must navigate to figure out one's taxable portion of SSA benefits here: --> https://thismatter.com/money/tax/social-security-benefits-taxation.htm

Which is why one needs to know the rules of the game early on & know when to hold & when to fold as far as generating "taxable income"

In your financial maze example Penelope, in Case#1 has it right & better yet if married ????

Of course in this same game you need to be free & clear mortgage wise and any other bills before 62 or when you start collecting SS

 

Then truthfully life in the USA is quite easy ????

[mania]

9 hours ago, connda said:

In the US.  For those of us out in rural Nowhereville, it's a nice bump.

Exactly !

[KhunLA]

11 hours ago, ThailandRyan said:

Able to stay ahead of the bread and cheese line with that 8.7%  I remember as a youngster my best friends family on food stamps, getting food from the church and standing in the line when they handed out the processed cheese blocks and powdered milk.....his mother made great grilled  cheese sandwiches and macaroni & cheese, but I would never want to see anyone live like that.

Govt cheese and food stamps, sadly, I remember it well.

 

On the flip side, I remember the hockey pucks, hi end filet mignon. destin for restaurants and jumbo shrimps.  They seem to fall off the truck every week ????

 

We ate really good.

 

I guessed 8% on another thread, I reckon I wasn't too far off.  Good thing it's an election year.

 

Tell my brother inflation is that low and he'll laugh at you, but I'll take it.

Edited October 14, 2022 by KhunLA

[kokesaat]

Food for Thought:  Not all countries are as generous as the US with things like COLA increases for all citizens, even those living outside the US.  I came here in 1996......those COLA increases add up.....likewise, if you don't get them, you're at a severe disadvantage after a few years of price increases.

[gamb00ler]

1 hour ago, kokesaat said:

Food for Thought:  Not all countries are as generous as the US with things like COLA increases for all citizens, even those living outside the US.  I came here in 1996......those COLA increases add up.....likewise, if you don't get them, you're at a severe disadvantage after a few years of price increases.

YES!  The shrinkage in income for non-indexed benefits is similar but opposite to the growth in investments due to compounded interest/yield.

[shortstop2]

On 10/13/2022 at 8:23 PM, Pib said:

The SSA announced 13 Oct 2022/today that the Social Security increase for 2023 will be 8.7%

If you do the math it was extremely close to being 8.8%.  But I am quite happy with 8.7%, reduced Medicare Part B premium, and the appreciation of the USD!

 

Pib, in another thread we were discussing responding to SS annual letter.  For my peace of mind, I sent it registered mail and it was just received. Here are the details for those who might be interested:

 

 13/10/2565 17:31     International (United States)     Final delivery  J D  
  13/10/2565 11:52     International (United States)     Arrival at post office    
  30/09/2565 15:15     International (United States)     Arrival at inward office of exchange    
  20/09/2565 14:49     SUVARNABHUMI MAIL CENTRE     Departure From Outward OE    
  20/09/2565 08:20     LAK SI MAIL CENTER     In transit    
  20/09/2565 00:42     SI RACHA MAIL CENTER     In transit    
  19/09/2565 17:12     CHOM THIAN     In transit    
  19/09/2565 14:59     CHOM THIAN     Posting/Collection

 

Note there was no signature but I suppose that JD initialed it. 

[Pib]

The wife and I got emails today/21 Nov from the SSA notifying us that the our 2023 Cost of Living Adjustment Notice/Letter was available in our SSA online account inbox.   Sure enough....we logged on and downloaded our COLA notices.  An 8.7% increase and Part B insurance premium dropping from $170.10 to $164.90. 

 

So, I expect those who receive their COLA notice only by snail mail should see it arrive in your mailbox over the next 2-4 weeks.  I know for me, SSA snail mail to my Bangkok residence usually takes around 2 weeks.

[gamb00ler]

30 minutes ago, Pib said:

The wife and I got emails today/21 Nov from the SSA notifying us that the our 2023 Cost of Living Adjustment Notice/Letter was available in our SSA online account inbox.   Sure enough....we logged on and downloaded our COLA notices.  An 8.7% increase and Part B insurance premium dropping from $170.10 to $164.90. 

 

So, I expect those who receive their COLA notice only by snail mail should see it arrive in your mailbox over the next 2-4 weeks.  I know for me, SSA snail mail to my Bangkok residence usually takes around 2 weeks.

I also checked my SSA account recently.  I didn't check if I got the notice but I did see that they listed my new benefit amount that I would receive Dec. 3.  I thought the increase wouldn't be applied until the Jan. '23 payment.

[Pib]

12 minutes ago, gamb00ler said:

I also checked my SSA account recently.  I didn't check if I got the notice but I did see that they listed my new benefit amount that I would receive Dec. 3.  I thought the increase wouldn't be applied until the Jan. '23 payment.

Yea....I see what you mean.  I just looked at my online acct again and on the main page it does show the new amount added in for my "next" payment which identified for o/a 2 Dec.   

 

But I expect that is wrong, misleading wording on the main page because the 2023 COLA applies to benefits you start earning 1 Dec 2022 which are "paid" Jan 2023.  

 

 

https://faq.ssa.gov/en-us/Topic/article/KA-01951#:~:text=When the increase takes effect,the entire month of December.

[racyrick]

7 hours ago, Pib said:

The wife and I got emails today/21 Nov from the SSA notifying us that the our 2023 Cost of Living Adjustment Notice/Letter was available in our SSA online account inbox.   Sure enough....we logged on and downloaded our COLA notices.  An 8.7% increase and Part B insurance premium dropping from $170.10 to $164.90. 

 

So, I expect those who receive their COLA notice only by snail mail should see it arrive in your mailbox over the next 2-4 weeks.  I know for me, SSA snail mail to my Bangkok residence usually takes around 2 weeks.

Also got the email today and logged in to make a copy so I can use this for Immigration in case my notices get lost in the mail.