RICHMOND, Va. (WRIC) — Social security recipients will receive an estimated $140 additional per month on average starting in January 2023. The Social Security Administration announced this change with the updated cost-of-living adjustment for the new year, attributing the increase to inflation.
Each year, the administration evaluates various factors of the nation’s economy to determine how social security benefits could be adjusted to better parallel the country’s economic status. Inflation reached a 40-year high in 2022, resting at 8.2% in the month of September.
Senator Tim Kaine discussed the relationship between inflation and social security benefits, especially for older populations.
“When inflation has been real low, the cost of living adjustment has been very negligible,” Kaine said. “Inflation has been higher, so seniors are going to see the most significant cost of living adjustment in their social security payment for a very long time.”
The change will affect approximately 70 million Americans.
8News spoke with Central Virginians across the community to hear their reactions to the recent announcement. Nearly every individual agreed this is a net positive, adding they would never complain about extra money. However, most also expressed skepticism regarding the tangible impact the boost could have on peoples’ pocketbooks.
Senator Kaine admitted the increase will be more meaningful to some individuals than it will be for others.
“For those who rely almost completely on social security for their retirement income, that’s positive news,” Kaine said.
For more information on how you will be impacted by this change, or to learn more about social security benefits in general and how to quality, visit the online Social Security Quick Calculator.