Several major changes are coming this January by the Social Security Administration (SSA) and beneficiaries will want to keep them in mind for the new year.
$365 Monthly Payments Increased, Five Biggest Changes to Social Security, SSI, and SSDI This 2023 – Here’s To Know More (Photo: Tododisca)
Social Security Administration (SSA) Changes This 2023
These changes in 2023 are handled by the Social Security Administration (SSA). According to the federal agency, approximately 70 million Americans rely on Social Security and Supplemental Security Income (SSI) benefits.
Five Major Changes For SSA Claimants
- COLA Boosted to 8.7%
The biggest and most important one is the 8.7% boost to monthly checks. The cost-of-living-adjustment (COLA) aims to protect Social Security payments from inflation. Furthermore, the rate adjustment each year will base on data from the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which estimates modifications in the cost of popular goods and services.
- Disability increase
Persons with disability beneficiaries will also be affected by the increase. The full SSI amount will be $914 in 2023, up from this year’s $841. According to the nonprofit National Organization of Social Security Claimants, the average Social Security Disability Insurance (SSDI) check is expected to jump to $1,483 per month, up from $1,364 per month.
- SSDI monthly earnings limit rises
In 2022, the SSDI monthly earnings limit was $1,350 for most claimants but it goes up to $2,260 if a beneficiary is blind. This 2023, the threshold will go up to $1,470 and $2,460, respectively.
- Earning limit goes up for Social Security
Working while collecting Social Security benefits, then your benefits may be lowered, depending on how much you earn. If your income was greater than $19,560 during 2022, the SSA will withhold $1 for every $2 you earn over the limit if you’re below the full retirement age.
This 2023 it boosted and reach worth $21,240. Reaching full retirement age in 2023 means you can earn up to $56,520. Hence, $1 is withheld for every $3 gained over that threshold. If your birth year is 1960 or later, your full retirement age is 67. For others, it’s 66 and an exact number of months.
- Maximum earnings for tax limit increases
The maximum income for Social Security taxes will also rise. It boosted from $147,000 to $160,200 following a rise in average salaries. Those who earn that maximum amount or higher in 2023 will pay $9,932.40 to the SSA.
Most individuals will pay 6.2% in taxes toward Social Security, but this amount is 12.4% in 2023 if self-employed.
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