Social Security Update 2023! | 6 BIG CHANGES COMING FOR SS, SSI, SSDI IN 2023! Great news for Social Security, SSI, and SSDI beneficiaries
What’s going on, guys? in this topic, we’re gonna talk about Social Security, SSI, and SSDI benefits and six big changes you can expect going into the new year, including the brand new cost of living adjustment, the increase in Social Security disability thresholds, the bump in SSI, federal payment standard, and much, much more. let’s get into this breaking news update regarding the latest Social Security, SSI and disability benefits information. This information changes on an almost daily basis, and it’s my job to keep you informed with the latest updates.
So make sure you watch every single video and watch all the way through so you don’t miss out on the most current information. Social Security will be seeing a lot of changes in 2023, many of them tied to the biggest cost of living adjustment, or Cola, in more than 40 years. The new Cola will impact payments to Social Security beneficiaries, but it’s not the only change you will see in 2023. The following are six changes to the program you can expect in the new year, according to a recently published fact sheet from the Social Security administration.
Number one is that the new Cola takes effect.
The big news for 2023 is an 8.7% jump in the Social Security cola, which is the highest since an 11.2% increase back in 1981. The Cola’s steep hike next year is due to this year’s soaring inflation rate, which is also the biggest in 41 years. The average monthly Social Security payment for all retired workers will rise to an estimated $1,827 in 2023 from $1,681, a gain of $146 a month for anyone receiving Social Security benefits. The new payment amount will start in January 2023, according to the Social Security administration. For those receiving SSI, the new payment amounts will begin on December 30, 2022.
Beneficiaries who receive both types will see their payments follow the same schedule, with the SSI increase arriving shortly before the Social Security increase. One thing to keep in mind the 2023 Cola of 8.7% won’t apply to all Social Security recipients. Some payment increases will be higher than 8.7%, and some will be lower due to a variety of factors, including your primary insurance amount, or PIA. And when you sign up for Medicare beginning in December, the Social Security administration will start mailing Cola notices to beneficiaries, providing details on next year’s payment amounts.
Number two is the increase in Social Security disability thresholds.
The Social Security administration pays monthly benefits to people who are unable to work for a year or more because of a disability, and the benefits usually continue until recipients can work again on a regular basis. However, there are also instances when you might have a qualifying disability even if you’re still working, such as if you can’t do work you previously did because of your medical condition. In this case, you are only eligible up to a certain amount of income. When you pass that threshold, you cannot be considered to have a qualifying disability. The following are the threshold changes for next year based on average monthly earnings.
Number three is that the SSI federal payment standard is rising. Social Security recipients who also qualify for SSI benefits will see an increase in the maximum federal SSI payment amounts in 2023, based on the 8.7% Cola. For individuals, the standard rises to $914 a month from $841 in 2022. For couples, the payment rises to $1,371 a month in 2023 from $1,261 in 2022.
Number four is that there is going to be a rise in maximum benefits for workers retiring at full retirement age.
Americans who retire at full retirement age, either 66 or 67, depending on when you were born, will see a bump in their maximum benefits next year. The maximum will rise to $3,627 a month in 2023 from $3,345 a month in 2022.
Number five is maximum taxable earnings will increase for those still working. Anyone who has ever received a paycheck knows that part of that check is withheld to pay Social Security taxes, there is a limit on the amount of your annual earnings that can be taxed by Social Security, called the maximum taxable earnings. That limit will rise to $160,000 in 2023 from $147,000 in 2022.
The 6th and final change that’s going to be happening in 2023 is that there’s going to be a change to earnings test exempt amounts. Social Security withholds benefits if your earnings exceed a certain level and if you’re under the full retirement age. This is called the retirement earnings test exempt amount. According to the Social Security Administration, one of two different exempt amounts apply a lower amount in years before the year you reach full retirement age, and a higher amount in the year you reach full retirement age. All right, my mad money minions, I hope you found this topic helpful.
All right, guys, stay safe, stay hustling, and I will talk to you guys again soon.