COLA Social Security payment schedule 2022, 2023 direct payments to soar to $4,555, where to find the funds

In 2023, Americans will be able to receive DIRECT payments of up to $4,555.

Cost-of-living adjustments (COLAs) determine how much Social Security benefits will be each year.

A COLA amount is determined by where the consumer price index (CPI) ends up at the end of the year.

In April, as a result of the Russia-Ukraine war and inflation, the index surged by 8.3 percent.

According to the Senior Citizens League (TSCL), the COLA will rise to 8.6 percent in 2023.

With the increase, the average benefit would rise by about $143 per month to $1,800, while the maximum benefit would rise by about $361 to $4,555.

A monthly Social Security benefit of $1,657 is average this year, while a monthly benefit of $4,194 is maximum.

CPI-U is a price index that measures the average change in prices paid by consumers over time.

CPI: what is CPI-U?

Providing a more comprehensive picture of price trends than the CPI-W, it covers more demographics.

Clerical workers
Self-employed professionals
Technical workers
Temporary workers

The Social Security Administration uses this kind of CPI to determine inflation and adjust Social Security and Supplemental Security Income for cost-of-living increases.

CPI: what is CPI-W?

As with CPI, the Bureau of Labor Statistics uses the same process to calculate CPI-W, but with components which impact specific demographics.

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CPI: what is CPI-U?

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