More than 65 million Social Security recipients are receiving higher payments starting this month.
The 8.7% cost-of-living adjustment is the largest one-time increase since 1981 when benefits rose 11.2% and a large boost from the 5.9% increase that took effect this year.
A recent analysis by The Motley Fool shows the average Social Security payout in November was $1,551.66. As of January 2023, that grow to $1,688.69, approximately $20,264 a year, or 49% above the federal poverty level for a single individual in 2023.
Payouts can vary widely based on the type of Social Security benefit that’s received.
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The majority of benefits goes to retired workers. As of December, the average estimated monthly payout for retirees was $1,679.18. That increased to an average of $1,825.27 in January 2023, working out to an extra $1,753 a year.
The average increase for qualifying spouses and children of retired workers is now $901.54 and $856.55, respectively. Non-disabled widows or widowers and the children of deceased workers combine for some 5.5 million of benefits paid to survivors. The former will see their checks increase to an average of $1,704.60 per month; the average payout for children of deceased workers will grow to $1,066.79 per month.
Some 8.9 million people with disabilities receive benefits as well. The average payout for these workers grew to $1,483.60 per month.