Starting in 2023, social security recipients will receive an 8.7% boost in their benefits.
On Thursday, the Social Security Administration shared that the historic increase means the recipients will receive over $140 extra each month beginning in January.
According to the agency’s fact sheet, all retired workers will receive an estimated average monthly benefit of $1,827. The boost will be combined with a 3% drop in Medicare Part B premiums. This means the recipients will get the full impact of the increase.
“This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising. It shows that we can provide more support to older Americans who count on the benefits they have earned,” Social Security Administration’s Acting Commissioner Kilolo Kijakazi says.
Several government indexes show that inflation affects older Americans more than the rest of the population. Inflation on medical costs are just one major part of the burden.
A spokesman for the AARP, Colby Nelson, says the benefits increase “will provide much needed relief to millions of Americans.” Nelson also called the annual cost-of-living increase “more crucial than ever as high inflation remains a problem for older Americans.”
The administration was established to help seniors and other recipients manage the higher cost of food, fuel and other goods and services. About 70 million people, including retirees, disabled people and children, receive Social Security benefits.
The announcement comes just weeks before the midterm elections. Also, during the midst of Republicans and Democrats debating on how to handle high prices in the future.