In October, the Social Security Administration will announce the 2023 Cost of Living Adjustment (COLA). The COLA is the percentage by which monthly retirement and disability benefits will increase from current levels. Early indications suggest an increase between 8%-9%, with some observers suggesting that the number may even exceed 9%, depending on inflationary trends.
Significant inflation is the reason for this significant leap, though the inflationary drivers appear to be starting to slow down. Even still, the COLA projection suggest that this will be the largest adjustment since the 11.2% adjustment that was applied in 1981.
While the COLA increase is good news for those on income from Social Security, it should be noted that Part B Medicare premiums are expected to increase as well. The premium increases will likely be announced in October and will consume at least some of the Social Security COLA increase for many beneficiaries.
If you are considering applying for disability benefits through Social Security, call Attorney Thomas O’Brien at O’Brien & Feiler for a free consultation.
