An increase in prices and wages will amend the payments and income rules for SSDI and SSI beneficiaries.
SSI and SSDI Important Changes
The Cost of Living Adjustment for (COLA) 2023 will have some major modifications you need to know for the year 2023. An 8.7% increase in benefit checks is one of the major amendments made by the Social Security Administration recently according to CPA news. According to the federal agency, there are 70 million Americans who are dependent on Social Security and Supplemental Security Income benefits.
Moreover, here are five major changes that boost the Social Security benefits you need to look out for in 2023:
- The Pensions will increase with an 8.7% cost-of-living in 2023
This has to be the most significant change of them all because the COLA rate always adjusts annually based on information from the Consumer Price Index for Urban Wage Earners and Clerical Workers. This measure changes the cost of popular goods and services. An 8.7% increase means that checks are going to be high as well from $4,194 to $4,559 and a $1,801 monthly. Meaning that beneficiaries will get a chance to get more than $365 monthly on coverage.
SSDI monthly earnings limit increase
Although you can technically be eligible for both programs, that has a significant difference between them. The income requirements are one of these variations. This year, the monthly income limit was $1,350 for people who claimed it, however, it increase to $2,260 if the beneficiary is blind. The boost for 2023 will rise to $1,470 and $2,460, accordingly.
Increase in disability
This increase will definitely apply to all persons with disability beneficiaries. Worth $841 is the maximum SSI benefit in 2022, which is going up to $914. Also, the average Social Security Disability Insurance (SSDI) has gained increased from $1,364 to $1,483 per month.
Earning limit will go up for Social Security
If people work while they are earning Social Security Benefits, these may be deducted depending on how much money they earn. If you made below $19,560 in 2022, the SSA will withhold $1 for every $2 you earn over that max limit as long as you are below the full retirement age. However, the cap is going to rise to $21,240 next year.
Max earnings for tax limit increases
Lastly, let’s not forget that the maximum wages for Social Security will rise in 2023. It goes from $147,000 to $160,200 and Americans who earn max or more in 2023, will pay $9,932.40 to the SSA.