Millions of retirees are about to get a $140 monthly raise from Social Security to help deal with how expensive everything has gotten

• Due to high inflation, retirees and people on disability are set to get a big raise next year.
• The Social Security Administration announced an 8.7% cost of living adjustment on Thursday.

Social security benefits are rising right alongside inflation.

In September, the Consumer Price Index rose to 8.2% year-over-year. That's bad news for consumers and wallets hit hard by inflation, especially as core inflation — which looks at price hikes without food and energy costs — also rose to 6.6%.

Social security checks are tied to cost-of-living hikes from the third quarter of one year to another. That's led to an 8.7% cost of living adjustment for the over 65 million benefit recipients in the US. According to the Social Security Administration, that'll translate to an over $140 increase in monthly checks. Last year, the cost of living adjustment came in at just 5.9%.

"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,"Acting Social Security Administration Commissioner Kilolo Kijakazi said in a release. "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."

The average retired worker will now receive $1,827 every month beginning in January to help deal with how expensive cost of living has become in the US. Couples who are both receiving social security will get an average of $2,972 a month. Disabled workers on social security will now get an average of $1,483 monthly. Over 7 million people receiving Supplemental Security Income (SSI) benefits, which targets Americans with disabilities and lower-income retirees, will get their raises starting December 30.

Those benefits don't kick in until 2023 for most recipients. With inflation still high, that might mean budget strains — and more older workers opting to "unretire."

The hikes also come as Democrats and Republicans square off over the future of the program. Social Security won't be able to pay out full benefits starting in 2035, according to an annual federal report on the program, unless Congress intervenes. Otherwise, benefits will have to be reduced by 20%. Today's hike will likely exacerbate Social Security's issues with replenishing its coffers.

Sens. Bernie Sanders, Elizabeth Warren, and other Democrats have proposed beefing up social security checks by $2,400 a month through enacting a payroll tax on all income over $250,000. They say that tax hike on high earners would fund the program — and higher checks — through 2096. Under the new adjustment, more earnings are subject to Social Security Tax, with up to $160,2000 taxed; last year, just up to $147,000 in earnings could be taxed.

However, Republicans aren't too sold on increasing benefits. In his economic plan, top GOP Sen. Rick Scott proposed reauthorizing Social Security every five years. Sen. Ron Johnson has suggested putting Social Security and Medicare up for potential spending cuts every year.

"Seniors deserve increases in their Social Security checks to keep up with risings costs — this year, and every year. Democrats are fighting to protect and expand Social Security, funded by the wealthy paying their fair share," Warren tweeted on Thursday. "Republicans want to cut these benefits."

Will the Social Security increase impact your life? Are you still struggling with inflation? Contact this reporter at jkaplan@insider.com.