Social Security beneficiaries can expect to see an 8.7 percent increase in their monthly checks beginning in 2023. The figure is the highest cost-of-living adjustment (COLA) issued by the Social Security Administration in 40 years.
Each year, COLAs are automatically applied based on the Consumer Price Index for Urban Wage Earners and Clerical Workers.
Between 2010 and 2020, average annual COLAs increased by just 1.7 percent, while COLAs have only risen above 8.7 percent three times — between 1979 and 1981 at 9.9 percent, 14.3 percent and 11.2 percent, respectively.
For the average retiree, monthly benefits come out to around $1,656, and the 8.7 percent increase means these beneficiaries may see $144 extra cash in each payment, beginning in 2023.