Military and Social Security Cost of Living Pay Increase For 2023
Military Pay and Benefits play an important role in military divorce and family law. Military income is relevant for support and military retirements are part of property settlement as well as a source of income. The purpose of annual increases is to help ensure that purchasing power is not unduly decreased by actual cost of living increases. Recently the cost of living increase has been much higher than in prior years.
Each year military pay increases to compensate for cost of living increases. The increases vary. In 2023, the increase for active duty military will be 4.6%. Though the actual societal cost of living increase is higher at around 7%.
Retirees also receive a cost of living increase to help individuals sustain their lifestyles despite inflation. Military retirees and those receiving disability pay receive a higher increase at 8.7%.Cost of Living
Over the last 30 years, American families have experienced an increase in the costs of basic necessities resulting in reduced economic security. Even middle-income families worry about paying their bills. In particular, prescription drugs, childcare, and education have risen substantially, and even faster than incomes.
The changes impact families differently. Different families spend their resources differently. Those with young children often spend more on housing and childcare than those without, and elderly families often spend more on home health care and prescription drugs. Public benefits can play a role in helping families afford basic needs through government programs, such as Medicare and Medicaid for medical care, the Child Tax Credit and subsidized school for childcare and academics, and food costs through the Supplemental Nutrition Assistance Program.
In employment, some organizations may incorporate an annual salary adjustment into employee pay. However, many companies give merit increases because most reward employees who are productive and contribute to the overall profitability of the business.Social Security Increases
Social Security and Supplemental Security Income benefits will increase 8.7 percent in 2023. A social security retirement is not divisible as an asset in divorce, however social security income does count as income for support. It can not, however, be garnished for support arrears. The maximum amount of earnings subject to the Social Security tax will increase to $160,200.
Increases vary and here is the pattern for the past ten years.
- January 2013 -- 1.7%
- January 2014 -- 1.5%
- January 2015 -- 1.7%
- January 2016 -- 0.0%
- January 2017 -- 0.3%
- January 2018 -- 2.0%
- January 2019 -- 2.8%
- January 2020 -- 1.6%
- January 2021 -- 1.3%
- January 2022 -- 5.9%
- January 2023 -- 8.7%
How can an attorney help with military divorce and family law? A Colorado Springs divorce and family law attorney can guide you through Colorado Springs military divorce and family law issues. This allows you to focus on moving forward to a better future rather than on spending your time trying to figure out the overly complex court system. Contact us at 719-344-5523 or complete our online form to set up a free thirty-minute informational consultation.