Social Security is not a program that remains the same from year to year. Each year can bring changes depending on the state of the economy. Yahoo Finance has projected what we might expect in terms of new standards for 2023, based on the first half of this year.
Each year brings a cost-of-living adjustment (COLA) in the monthly benefit, based on the consumer price index (CPI-W) for urban wage earners and clerical workers in the first nine months of the prior year. This year’s COLA was 5.9 percent. Given the current CPI-W, analysts are projecting a possible 8.6 percent rise for 2023.
Another possible change will be an increase in the level of wages subject to the Social Security tax on earned income. This year’s tax was based on the first $147,000 of income, an increase of 2.9 percent from the $142,800 in 2021. So higher earners could pay more in 2023.
As wages increase in 2022, people will pay more into their Social Security accounts. As a result, the maximum monthly benefit will rise for those retiring in 2023. Also, there could be an increase in the amount of money you can earn while collecting Social Security benefits.
Council of Seniors Works to Improve Social Security Benefits
High inflation makes more income a must. That’s why here at Council of Seniors, we’re pushing Congress to pass The SAVE Benefits Act. The sum of $581 was withheld from seniors in previous years due to inadequate COLAs. This bill will return this money to seniors.
Take time now to sign our petition! Let’s show Washington politicians the growing number of people who support this bill.
Connect with us on Facebook and Twitter for more updates!