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5 Big Changes To Social Security In 2023— Here’s What You Should Know!

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

There are 5 big changes that have affected Social Security this 2023. In this article, read and discover these changes that are expected to be seen this year!

Social Security Benefits

Social Security Benefits

Social Security is expected to be seeing 5 big changes this 2023. Most of these changes have been connected to the largest cost-of-living adjustment (COLA) yet in 41 years. The new COLA that has increased to 8.7% is not the only change that will affect the Social Security beneficiaries this year, as reported by Cariaga.

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Disability Thresholds

According to Cariaga, the Social Security Administration (SSA) issues monthly payments to disabled individuals who are not able to work for a year. The benefits issued will usually continue until the recipient can work regularly again. However, if one cannot properly work because of their disability, the recipient is only eligible for up to a certain amount of income.

SSI Federal Payment

Social Security recipients who are also eligible for Supplemental Security Income (SSI) benefits can expect an increase in SSI payments. For individuals, the payments will increase to $914 per month from $841 in 2022. For couples, the payment will increase to $1,371 per month from $1,261 in 2022.

Retiring at Full Retirement Age

Individuals who have retired at the full retirement age (FRA) of either 66 or 67 will also see an increase. The number of maximum benefits will increase to $3,627 a month from $3,345 a month in 2022.

Maximum Taxable Earnings

A part of the paychecks received has always been withheld to pay Social Security taxes. However, there is a limit on the number of annual earnings that can be taxed by Social Security. It is called the maximum taxable earnings. The limit on that amount will increase to $160,200 from $147,000 in 2022.

Earnings Test Exempt Amounts

According to Cariaga, Social Security withholds benefits if earnings have exceeded a specific level. This is called the retirement earnings test exempt amount. If a recipient is under the full retirement age, the earnings test exempt amount will increase to $1,770 a month from $1,630 a month in 2022. On the other hand, if a recipient has reached the FRA, the amount will increase to $4,710 a month from $4,330 in 2022.

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