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Published: Oct 13, 2022 5 min read
Social Security Card Inside A Pile Of Dollar Bills
Money; Getty Images

It’s official: Tens of millions of Americans who rely on Social Security benefits each month are set to get their biggest raise since 1981.

Soaring inflation in recent months has pushed the cost of living adjustment, aka the COLA, for Social Security benefits to 8.7%, the agency confirmed Thursday.

“Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room," said Acting Commissioner Kilolo Kijakazi in an announcement. "This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned.”

Each month, more than 70 million Americans receive payments from the Social Security Administration. The vast majority of them — some 51 million — receive retirement benefits, but the agency also assists millions of disabled workers, spouses and children of deceased workers.

All of them are automatically eligible for the increased benefits, which will begin paying out for most in 2023. Those on Supplemental Security Income, a group of approximately 7 million, will receive the boosted benefits starting in December 2022.