Social Security benefits to jump by 8.7% next year

By FATIMA HUSSEIN 

WASHINGTON (AP) — Millions of Social Security recipients will get an 8.7% boost in their benefits in 2023. 

The 8.7 percent cost-of-living adjustment will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022.

That's a historic increase and welcome news for American retirees and others — but it's tempered by the fact that it's fueled by record high inflation that's raised the cost of everyday living.

The average recipient will receive more than $140 a month extra beginning in January.

The cost-of living adjustment is meant to help cover the higher cost of food, fuel and other goods and services.

How well it does that depends on inflation next year.