The United States is seeing a very large inflation in all prices. Even though this situation is global, there are many people who have insufficient payment to meet these new expenses. All Social Security recipients could be in trouble for next year if benefits don’t go up a bit. For this there is the COLA, of course. But there are also other ways that could bring Social Security payments into better positions.
If you think your Social Security retirement benefit will fall a little short next year, don’t despair. It may well increase a bit in the end. It is true that this improvement is not for anyone to get rich, but to be able to pay the bills with peace of mind and enjoy a few years of health and relaxation. What is certain is that there are several ways that will make it possible for payments to improve by 2023.
Better benefit payments for 2023
For this year 2022, the average benefit payment is $1657. With this money, Social Security retirees can pay their bills and live in peace of mind throughout. But by next year 2023 those payments may increase, even so that they have considerably more purchasing power. Let’s look at what influences these payments and how they might improve.
- A huge COLA: The COLA is critical for Social Security payments to increase. In 2022, pensions will rise by 5.9%, but by next year they are expected to rise by as much as 8.6%. These figures are not yet accurate, but estimates from some think tanks, such as The Senior Citizens League, predict a big increase next year.
- Maximum payout increase: Currently, the maximum Social Security retirement payout is $4,194 per month. This could increase next year to bring it in line with current times. In any case, it is not normal to receive this type of benefit, since to do so requires a large source of income during the working years.
- Change in the earning limits: In this sense, if you are already receiving Social Security retirement payments, it does not affect you at all. This only affects people who have applied for the ERA. If you have applied for FRA, don’t worry, this will not affect you. The earning limits will be increased. They are currently at $19,560, but that could change by next year 2023.