The Social Security Administration makes changes every year. These changes are always to improve the system and to make sure that all United States citizens have fundamental rights. Fortunately, these changes do take effect, although they can sometimes fall short. Whether it is the COLA, the maximum benefit or the income limit, the changes are constant and never stop.
Below we are going to take a look at some of the changes that could be coming in Social Security in 2023. There is a high probability that all these changes will become effective, so don’t miss the information. In addition to these changes, others could come as a surprise. It is fortunate that the Social Security Administration always announces everything well in advance.
Social Security changes in 2023
Remember that these changes are not yet official, but major media outlets like GoBankingRates assure that they are very possible. Pay attention to these changes that will revolutionize Social Security in the coming year 2023:
- COLA. This change takes place every year, but 2023 may be very special. With inflation not stopping, expect the COLA to increase benefits by close to 10%. This would be a record increase and the largest in 40 years. We do not have the exact number until October, but it is certain that it will not go below 8%. Everything seems to indicate that this will be the case.
- The increase in the maximum benefit. As soon as we know the COLA increase for inflation we will be able to calculate what the maximum benefit will be in 2023. Currently, the highest retirement benefit in Social Security is $4,194. This figure will be higher for next year for sure, since as monthly checks increase so does the limit.
- The income limit. As with the previous two items, the earnings limit will also increase to a greater or lesser extent. If Social Security is higher due to inflation, we will have a higher income limit. Remember that for every $2 over the limit, the government will deduct $1 from your benefit.
If all of these changes are ultimately implemented, it is possible that many people will benefit. Receiving higher Social Security in these cases doesn’t exactly mean gaining purchasing power. What’s more, it may ultimately be the opposite, as inflation will continue to increase and make everything more expensive come 2022. The increase will ease pensioners’ pockets a little, but some may have problems.