This will amount to an average increase of more than $140 per month beginning in January for Social Security beneficiaries, and beginning in December for more than 7 million Supplemental Security Income (SSI) beneficiaries.

Of note, the Social Security Act links the annual cost-of-living adjustment (COLA) to the increase in the Consumer Price Index.

"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. 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," said acting Commissioner Kilolo Kijakazi in a statement.