Social Security Cola Calendar 2023: What You Need To Know
Social Security Cola Calendar 2023: What You Need To Know
As someone who relies on Social Security benefits for my income, I always pay close attention to changes that may affect my monthly payments. One of the most important updates each year is the Cost of Living Adjustment, or COLA, which determines how much Social Security benefits increase to keep up with inflation.
What is the Social Security COLA?
The Social Security COLA is an annual adjustment to benefits that is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This index measures the average change in prices for goods and services that are typically purchased by these groups of workers, and is used to determine how much the cost of living has increased.
The COLA is calculated by comparing the average CPI-W for the third quarter of the previous year to the average CPI-W for the third quarter of the current year. If the current year’s average is higher, then Social Security benefits will be increased by that amount starting in January of the following year.
What is the Social Security COLA Calendar for 2023?
The Social Security Administration has announced that the COLA for 2023 will be 3.1%. This is a significant increase compared to recent years, which have seen COLAs of 2.0% in 2020 and 1.3% in 2021. For someone who receives the average Social Security benefit of $1,543 per month, the 3.1% increase would mean an additional $47.87 per month, or $574.44 per year.
World Events and Festivals in the Social Security Cola Calendar 2023
With the increase in Social Security benefits comes the opportunity to enjoy some of the world’s most exciting events and festivals. Here are just a few that are taking place in 2023:
- January 28 – February 15: Chinese New Year
- February 5: Super Bowl Sunday
- March 17: St. Patrick’s Day
- April 14-16: Coachella Music Festival
- May 5: Cinco de Mayo
- June 9-18: Cannes Film Festival
- July 4: Independence Day (USA)
- August 4-13: Edinburgh Fringe Festival
- September 1-4: Burning Man
- October 31: Halloween
- November 23: Thanksgiving Day (USA)
- December 25: Christmas Day
Question & Answer
Q: How does the Social Security COLA affect other benefits?
A: The Social Security COLA can affect other benefits that are tied to the cost of living, such as Supplemental Security Income (SSI), VA disability compensation, and federal retirement programs. These programs may also see an increase in payments based on the COLA.
Q: Are there any downsides to the Social Security COLA?
A: While the COLA is meant to help Social Security beneficiaries keep up with inflation, it may not fully offset rising costs for some people. Additionally, the increased payments may push some beneficiaries into a higher tax bracket or affect their eligibility for certain programs that are based on income.
Overall, the Social Security COLA is an important update for anyone who receives Social Security benefits. By understanding how it works and how it may affect your payments, you can better plan for your financial future and enjoy some of the world’s most exciting events and festivals in 2023.