News that the Social Security cost of living adjustment (COLA) will be 8.7 percent for 2023 no doubt got folks excited about the largest COLA hike in decades. Before you take your current monthly benefit and multiply it to figure out your 2023 payment, recognize it’s not that simple to determine what you receive.
The Social Security Administration (SSA) will be mailing out notices to Social Security recipients in to inform them of the exact monthly amount they will be paid beginning in January 2023.
Your payment is calculated based on your Primary Insurance Amount (PIA), which is the benefit you would receive if you filed a claim for benefits upon reaching your full retirement age (FRA). This is 66 or 67 depending upon the year in which you were born, or if you wait until age 70 in order to get a higher amount.
Of course, the SSA doesn’t make it simple. The calculation is based on its use of “average indexed monthly earnings.” For those who chose to take benefits early, the increase will be less than 8.7 percent. For those waiting until age 70, it will be higher than 8.7 percent.
Council of Seniors Wants You to Get a Fair COLA
Additional income is critical in tight economic times. That’s why Council of Seniors is fully committed to getting Congress to pass The SAVE Benefits Act. We need this legislation because the Social Security cost-of-living adjustment (COLA) hasn’t kept up with inflation in recent years. If it passes, $581 will be returned to eligible seniors.
Take time right now to sign our petition. Let’s show Congress how many people believe this bill should be a top priority.
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