Social Security benefits are set to rise by over $140 per month in 2023. But you need to ensure that you get how much money you can receive. A record 8.7% Social Security cost-of-living adjustment will mean bigger monthly benefit checks in 2023. But you would have to gauge the size of your increase.
To account for the record inflation, Social Security benefits are set to go up by over $140 a month on average in 2023. This comes after a record cost-of-living-adjustment comes into effect. The exact amount will vary for the 70 million Americans who are set to benefit from this increase in Social Security payments.
The Social Security beneficiaries have started receiving their benefits from January this year. While over 65 million Social Security beneficiaries received their benefit payments in January, 7 million beneficiaries of the Supplemental Security Income (SSI) received their payment by the last week of January.
The average benefit for retirees has gone up by $146 per month. It is $1,827 in 2023 from just $1,691 a year ago. At the same time, disability benefits have increased by $119 a month on average. It now stands at $1,483 this year from $1,364 a year ago. The SSI, or the Supplemental Security Income, has seen the standard individual monthly payment increase by $73 per month. It now stands at $914 a month from $841 a year back.
The Social Security Administration provided notices in the next few months that include details of all the monthly benefits for 2023. And you can find out accurately how much you stand to receive sooner. You can multiply your net Social Security benefits by 8.7%, the cost-of-living-adjustment that has been declared for 2023. The most accurate reading can be deduced by adding your premium for Medicare Part B to the net Social Security benefit. Then multiply that total by the cost-of-living-adjustment for 2023.
This is in contrast to other years when it would usually be more apt to deduct your premium for Medicare Part instead. The Medicare Part B premium payments typically come directly from the Social Security benefit payments. It also covers outpatient care.
Such a premium will be around 3% less this year. The standard premium per month will be dropping by $5.20 a month. It will now be $164.9 for 2023 instead of $170.10 in 2022. If your income is higher as calculated against the tax returns for the past two years, you will end up paying more than the normal standard monthly rates. Those income-linked adjustment amounts for 2023 will start at $97.000 for individual filers and double that amount for married couples who file jointly.
The Importance Of Social Security For Americans
Social Security recipients received their second check for June, worth up to $914. The second check went out on June 30. This double payment is the result of a quirk in the schedule of the Social Security Administration. Their schedule ensures that Americans receive double payments on some months when the first of the following month is a weekend.
The second June payment is in fact the payment for July as July 1 is on a Saturday this year. The amount that beneficiaries receive is not fixed and there is some variation due to multiple factors. Individual filers, joint filers, and essential beneficiaries receive different amounts.
While individual filers receive $914 a month, eligible couples receive up to $1,371. Essential persons who live with people receiving SSI payments and also providing them with all necessary care receive $458 every month, reveals the SSA records.
The SSI payments go out as an extra to the regular benefits given by the Social Security Administration to retirees. The SSI gives through this program monthly payments to adults and children suffering from blindness and even other disabilities if their income is limited.
To qualify for receiving the SSI payments, a potential beneficiary should be above the age of sixty-five and should be at least partially blind. They can also be suffering from mental or physical conditions that seriously limit their ability to work and even impair their daily physical activity. This limitation to their physical and mental activity should be for a period of twelve months or more or that which will eventually lead to their death. The SSI payments are thus determined according to the financial needs of potential beneficiaries.
Beneficiaries will receive twelve checks per year under the revised schedule. And even though they might receive no checks on some months, they should now realize that the administration makes up for this on other months. There are four months this year – March, June, September, and December – where the payments will double.
The Supplemental Security Income
Supplemental Security Income is a program that provides crucial support to eligible individuals above the age of sixty-five. The disabled and blind are also supported under this program which is funded by the federal government. Individuals should file an application for the SSI/SSP.
They must also meet resource and income limits set by the Social Security Administration. All US citizens, or non-citizens who have been lawfully admitted as permanent residents and meet certain special conditions, and are US residents are eligible to apply for the SSI. They must also not reside in a public institution and should be eligible to apply for benefits from every other program for which they may qualify.
States also provide State Supplementary Payment. Recently the California state administration authorized through legislation a one-off supplemental SSP payment of $600 to SSI or SSP recipients. This was to provide relief from hardship due to the COVID-19 pandemic. The amount was automatically mailed out to the recipients based on their zip code. Recipients received their payment based on a schedule according to this zip code.