the is Cost of Living Adjustment (COLA) The year 2023 will see some major changes that you need to be aware of for the coming year. social Security Programs run by the administration are making some important adjustments and beneficiaries will want to pursue them starting next year. According to the federal agency, about 70 million Americans are dependent on Social Security benefits and Supplemental Security Income. There are five major changes they need to look out for in 2023.
1- An increase of 8.7% for retirees
This has to be the most important change of them all because the COLA rate is always adjusted each year based on data from the Consumer Price Index for urban wage earners and clerical workers. This measures adjustments in the cost of popular goods and services. An increase of 8.7% means checks will rise from $4,194 to around $4,559 and $1,801 per month. Which means claimants will stand a chance of getting another $365 per month on coverage.
2.- Increased disability
This increase will certainly apply to all disability recipients as well. In 2022, the maximum SSI amount was $841, which increases to $914. Also, the average Social Security Disability Insurance (SSDI) increases from $1,364 to $1,483 per month.
3.- Raising the monthly SSDI earnings cap
Although you can technically qualify for the two programs, there is a big difference between them. One such difference is income qualifications. This year, the monthly earnings cap was $1,350 for most people who claimed it, but it rises to $2,260 if the beneficiary is blind. The increases for 2023 will rise to $1,470 and $2,460, respectively.
4.- The Social Security earning limit will be raised
If people work while they collect Social Security benefits, they may be reduced depending on how much money you earn. If you earn more than $19,560 in 2022, the SSA will withhold $1 for every $2 you earn over that limit as long as you are below full retirement age. However, that limit will increase to $21,240 next year.
5.- Maximum earnings to increase the tax limit
Finally, let’s keep in mind that the Social Security earnings cap will increase in 2023. It goes from $147,000 to $160,200. People who achieve the cap or more in 2023 will pay $9,932.40 to the SSA. for most people, taxes Toward Social Security is 6.2%, but this amount rises to 12.4% if you are self-employed.