The 8.7% Social Security increase in 2023 was one of the largest cost-of-living adjustments (COLAs) in US history, affecting millions of retirees, disabled individuals, and beneficiaries.
While some have attributed this adjustment to former President Donald Trump, the Social Security Administration (SSA) determines COLA increases based on inflation data rather than presidential policies.
If you rely on Social Security benefits, you must understand the increase and how it will affect you. This guide will explain who qualifies, how the increase is calculated, and what it means for your finances, as well as address common concerns and misconceptions about Social Security adjustments.
8.7% Social Security Increase Under Trump
| Topic | Details |
|---|---|
| Increase Amount | 8.7% boost in Social Security benefits |
| Effective Date | January 2023 |
| Eligibility | Retirees, Social Security Disability (SSDI), Supplemental Security Income (SSI) recipients |
| Reason for Increase | Cost-of-Living Adjustment (COLA) due to high inflation |
| Determining Factor | Based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) |
| Official Source | Social Security Administration (SSA) |
The 8.7% Social Security increase in 2023 was a significant change that helped millions of retirees, disabled people, and low-income beneficiaries keep up with inflation. While some headlines suggested that former President Trump was to blame for the increase, the fact is that the Social Security COLA is calculated automatically using inflation data.
What Led to the 8.7% Social Security Increase?
Each year, the Social Security Administration (SSA) calculates the COLA to ensure that benefits keep up with inflation. In 2022, inflation reached a 40-year high, raising the cost of essential goods like food, housing, and healthcare.
How COLA Is Calculated
The COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which measures how prices fluctuate for average households. If inflation rises, COLA increases Social Security benefits to help recipients keep their purchasing power.
Inflation rates in 2023 were particularly high, resulting in an 8.7% increase—one of the largest in Social Security history.
Past COLA Increases for Comparison:
- 2022: 5.9% increase
- 2021: 1.3% increase
- 2020: 1.6% increase
The 2023 increase was significantly higher than previous years due to soaring inflation levels, which were driven by factors such as supply chain disruptions, energy price fluctuations, and increased consumer demand.
Who Qualifies for the 8.7% Increase?
If you receive Social Security benefits, you were automatically eligible for this increase starting in January 2023. Here are the main groups that benefited:
1. Retirees
Individuals receiving Social Security retirement benefits saw their payments rise proportionately. This increase was especially significant for seniors who rely on fixed incomes to cover daily expenses.
2. Social Security Disability Insurance (SSDI) Recipients
Those on disability benefits also saw an increase in their monthly payments, which will help them manage rising healthcare and living expenses.
3. Supplemental Security Income (SSI) Beneficiaries
Low-income SSI recipients also saw an increase in benefits, providing much-needed financial relief in the midst of economic uncertainty.
4. Survivor Benefits Recipients
Spouses, children, and dependents receiving Social Security survivor benefits also benefited from the 8.7% increase, ensuring financial stability for families who have lost a wage earner.
The SSA automatically applied the increase, so no action was required to receive it.
How Much Did Benefits Increase?
Below is a breakdown of how the 8.7% COLA affected various types of Social Security beneficiaries:
| Type of Benefit | Average Monthly Increase | New Average Benefit |
|---|---|---|
| Retired Workers | $146 | $1,827 |
| Disabled Workers | $119 | $1,483 |
| Senior Couple (both receiving benefits) | $238 | $2,972 |
| Widowed Mother with Two Children | $282 | $3,520 |
| SSI Recipients | $73 | $914 |
(Source: Social Security Administration)
These increases helped recipients keep up with rising costs of essential expenses like rent, groceries, and healthcare.
How to Check Your Updated Social Security Benefits
If you’re unsure how much your Social Security payment increased, follow these steps to check:
- Log into Your Social Security Account:
Visit SSA’s My Account portal to access your updated benefit statement. - Check Your Benefit Statement:
The SSA updates your earnings and benefit amount each year based on COLA changes. - Look at Your Bank Statement:
If you receive direct deposits, your new payment amount should reflect the 8.7% increase. - Call the Social Security Administration:
If you need assistance, contact SSA at 1-800-772-1213.
