Social Security increases are an annual occurrence in the United States. The Government increases the check of all U.S. States through the Cost-of-living-adjustment (COLA). Thanks to this COLA, all Social Security beneficiaries will have an increase in their monthly check. This is very good news to combat inflation and all the increase in current prices. We will know this week what the exact amount of this increase will be through the COLA. Therefore, in a very short time, in just a few days, we will be able to make calculations about our financial future.
If you are waiting to hear this, you may be interested to know that the COLA increases both Social Security retirement payments and disability payments. Not only that, but SSI may also see an increase through the COLA. All of these payments will see an increase by the start of 2023. Still, we won’t have to wait that long to find out the exact percentage. This week you will have at your disposal the figure that will increase your retirement or disability subsidy.
To be exact, next Thursday the 13th is the big day. We will have notifications as soon as Congress and the Government decide the exact figure that will increase Social Security payments by 2023. It will be, then, a good day for many of the retirees who are waiting for an increase that will bring prices in line with current inflation. It is not possible to know yet, but we can make an estimate of about 9% based on the facts.
The two major changes to Social Security for 2023
The first of these two major changes is the COLA increase itself in 2023. If in 2022 we saw a Social Security increase of around 6%, it is possible to see this almost 10% increase as really huge. What seems like news, which it is for many Social Security beneficiaries, could be very bad news for some. This is because many will reach the tax threshold, something that did not happen before. Thus, they will have to pay taxes that they did not pay before.
On the other hand, the other major change is the maximum benefit that will be charged starting in 2032. Currently, the maximum benefit in 2022 is $4,194 if you meet all the requirements. This figure will be higher because pensioners will collect a percentage more. With a COLA increase of 9%, Social Security would reach the figure of $4,571.46. However, this figure is the highest if certain requirements are met that not all U.S. citizens can meet.