This Web Story discusses the 6 biggest changes to Social Security in 2023, including the biggest cost-of-living adjustment (COLA) in 40 years, an increase in the maximum Social Security benefit, an increase in the Social Security Disability thresholds, an increase in the SSI Federal Payment Standard, an increase in the maximum taxable earnings, and a change to the earnings test exempt amounts.
1. The biggest cost-of-living adjustment (COLA) in 40 years. The COLA for 2023 is 8.7%, the highest since 1981. This means that Social Security benefits will increase by 8.7%, which will help to offset the rising cost of living.
2 An increase in the maximum Social Security benefit. The maximum Social Security benefit for workers retiring at full retirement age (FRA) is increasing to $3,627 per month in 2023. This is an increase of $282 from 2022.
3 . An increase in the Social Security Disability thresholds. The Social Security Disability thresholds are increasing in 2023. This means that more people will be eligible for disability benefits.
4. An increase in the SSI Federal Payment Standard. The SSI Federal Payment Standard is increasing to $914 per month for individuals and $1,371 per month for couples in 2023. This is an increase of $73 and $80, respectively, from 2022.
5 .An increase in the maximum taxable earnings. The maximum taxable earnings for Social Security will increase to $147,300 in 2023. This means that workers will pay Social Security taxes on more of their earnings.
6. A change to the earnings test exempt amounts. The earnings test exempt amounts are increasing in 2023. This means that retirees who continue to work can earn more money before their Social Security benefits are reduced.
These are just some of the big changes to Social Security in 2023. It is important to stay informed about these changes so that you can plan for your retirement.
Sources: The sources for this article are credible news sources, such as the Social Security Administration, CBS News, and NerdWallet.