Social Security checks will go up by 8.7% in January

Oct. 13 (UPI) -- Social Security recipients will get an 8.7% cost of living increase in 2023, according to the Social Security Administration.

Starting in January the average Social Security check will increase by $140 a month, the highest increase in 40 years. The cost of Medicare premiums will also go down.

"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," Acting Social Security Commissioner Kilolo Kijakazi said in a statement. "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."

According to the Center for Medicare and Medicaid Services, the Medicare premium cost will decline by $5.20 per month.

The 8.7% cost of living adjustment will go to more than 65 million Social Security beneficiaries. More than 7 million people collecting SSI will also get the cost of living adjustment.

Record inflation is driving the cost of living increase. The Social Security Act ties the annual COLA adjustment to the Consumer Price Index inflation rate, which is determined by the Department of Labor.

The National Committee to Preserve Social Security and Medicare's Dan Adcock says the COLA adjustment isn't an increase in benefits, they just help recipients "tread water."

"They're more trying to provide inflation protection so that people can maintain their standard of living," Adcock said.