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2023 Social Security Benefits Rises The Highest in 40 Years; How Much Will You Receive?

Social Security Benefits [Photo: Econlib]
Social Security Benefits [Photo: Econlib]

The Social Security benefits in 2023 will rise to its highest amount yet in 40 years. Read and find out how much you will be receiving this year!

Social Security Benefits [Photo: Times of India]

Social Security Benefits [Photo: Times of India]

In 2023, Social Security beneficiaries will receive a substantial increase, with the benefits rising by 8.7%. This increase has surpassed the 5.9% COLA received in 2022. In 40 years, this has been the highest increase in Social Security benefits yet. This increase is thanks to the cost-of-living adjustment (COLA) which boosted the monthly payments from $146 to $1,827. However, for 70 million beneficiaries, the increase will only help them sustain the inflation that rose to 9.1%, the highest in 40 years as well.

According to Davidson, in 1935, the Social Security Act has been signed by former President Franklin D. Roosevelt into law. The program became part of the historical New Deal as a retirement program for workers. In 1937, the first lump-sum payments were issued and in 1939, the Congress included payments for workers’ survivors. In 1940, regular monthly checks began and by 1956, benefits for the disabled were added. To date, workers pay Social Security taxes and in turn, the money is issued to beneficiaries as monthly income.

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How Much Social Security Will You Get?

According to Davidson, the Social Security Administration (SSA) computes benefits depending on the monthly average of up to 35 of a beneficiary’s highest income. The income depends on the change in every wage level and the increase in a country’s standard of living. Therefore, the benefits will reflect that increase. A Social Security calculator may also help in computing the benefits. However, Kurt Czarnowski of Czarnowski Consulting said that there are no laws about correcting errors related to wages. If a beneficiary happens to have a W-2, a correction can easily be made.

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