Social Security is a vital source of income for millions of Americans, and it is important to stay informed about the changes that are being made to the program. In 2023, there are several big changes to Social Security that you should know about.
Cost-of-living adjustment (COLA): Social Security beneficiaries will receive an 8.7% COLA in 2023, the largest increase since 1981. This means that the average monthly benefit will increase from $1,681 to $1,827.
Maximum taxable earnings: The maximum taxable earnings for Social Security taxes will increase from $147,000 to $160,200 in 2023. This means that workers will only pay Social Security taxes on the first $160,200 of their earnings.
Retirement earnings test: The retirement earnings test will be adjusted for inflation in 2023. This means that workers who earn more than the annual exempt amount will have their Social Security benefits reduced. The annual exempt amount for 2023 is $19,560 for workers under full retirement age and $21,240 for workers at full retirement age.
Social Security disability thresholds: The Social Security disability thresholds will be adjusted for inflation in 2023. This means that workers who are considered disabled will need to earn less than the substantial gainful activity (SGA) threshold in order to qualify for benefits. The SGA threshold for 2023 is $1,350 per month for non-blind workers and $2,260 per month for blind workers.
Paid family and medical leave: The Biden administration has proposed a national paid family and medical leave program that would be administered by the Social Security Administration. The program would provide up to 12 weeks of paid leave per year for workers to care for a new child, a seriously ill loved one, or themselves.
Social Security trust fund: The Social Security trust fund is projected to be depleted in 2034. This means that if no changes are made, Social Security benefits will have to be cut by 20%. Congress is considering a number of proposals to address the trust fund shortfall, including raising the retirement age, increasing Social Security taxes, or reducing benefits.
Social Security trust fund: The Social Security trust fund is projected to be depleted in 2034. This means that if no changes are made, Social Security benefits will have to be cut by 20%. Congress is considering a number of proposals to address the trust fund shortfall, including raising the retirement age, increasing Social Security taxes, or reducing benefits.
Social Security trust fund: The Social Security trust fund is projected to be depleted in 2034. This means that if no changes are made, Social Security benefits will have to be cut by 20%. Congress is considering a number of proposals to address the trust fund shortfall, including raising the retirement age, increasing Social Security taxes, or reducing benefits.
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 make informed decisions about your retirement planning.