3 Things To Know About Boosted Social Security 2023 COLA Payments

The COLA for 2023 will be based on the Consumer Price Index for Urban Wage Earners and Clerical Workers for the third quarter.

On September 8, Governor Kathy Hochul said that some New Yorkers could get up to $270 as a new stimulus payment.

The CPI for August is expected to come out on September 13. This is a week before the Federal Reserve is likely to raise its key benchmark interest rate by 0.75 percent for the third time in a row.

The rise for 2022 was 5.9%, which means that the average retirement benefit will go up by $92 a month. It was a big jump compared to the two years before.

As of July 2022, the average monthly SSA benefit was $1,624. This adjustment hasn't kept up with 40-year high inflation rates of 9.1% year-over-year in June.

July's change in the CPI, which came in at 8.5%, was a little less than June's, but it still marked almost a year and a half of inflation.

Here are three things you should know about the new measures that will affect about 65 million people.

 Next year's benefits hike "will be one of the largest COLAs ever awarded," said Senior Citizens League policy expert Mary Johnson.

1. Historic Highs

The League had expected a COLA of almost 11%, the greatest since 1982. According to the League, Social Security's buying power has fallen 40% since 2000.

The second change will impact 6% of the workforce, says Motley Fool. 94% of the US workforce earns less than $147,000 and pays Social Security on every dollar.

2. Rich will shell out more

But the National Average Wage Index (NAWI) will boost the maximum taxable earnings threshold in 2023. This implies high-income earners will have a higher taxable pay ceiling.

The news isn't all bad for high-rollers. If you make a lot of money over a long period of time, you are likely to get a bigger monthly benefit.

3. Rich retirees can expect a bigger payout

In 2022, for example, the maximum monthly payout at full retirement is $3,345 per month. With inflation at a more than 40-year high, it seems likely that top-tier compensation will climb.