In order to keep the system modernized — and in line with rising costs and incomes — the Social Security Administration announces regular updates to the program every year. The most newsworthy among these is typically the annual cost-of-living adjustment, or COLA, which modifies beneficiary payments based on changes in the inflation rate.
In 2022, the COLA was significant — one of the largest in decades — but the recently announced 2023 COLA was even bigger. Here’s an overview of the major changes that happened to Social Security in 2022, along with a look at those that will spill over into 2023.