Social Security recipients to see biggest COLA increase since 1981

Social Security benefits are set to rise by 8.7% in 2023, the biggest bump in four decades as stubbornly high inflation erodes the buying power of retired Americans, the Social Security Administration said Thursday. 

The increase, known as a cost-of-living adjustment (COLA), is the biggest since 1981, when recipients saw an 11.2% jump. It will increase the average monthly benefit by about $140. 

More than 64 million Americans collecting Social Security will receive the bigger payments beginning in January, the administration said. 

The higher payments come in response to the...