Social Security Increases Benefits by 8.7% for 2023
You may have seen this, but the Social Security Administration has announced a cost-of-living adjustment (COLA) to recipients’ monthly Social Security and Supplemental Security Income benefits. More than 65 million Americans will see the 8.7% increase in their payments beginning in January 2023.
Let me also add that this increase happens automatically. You should not have to “do” anything or provide information. Unfortunately, this could be ripe for being taken advantage of by scammers and wrong-doers attempting to take advantage of senior adults. Stay vigilant!
In addition to the COLA, the Social Security Administration also announced that the maximum amount of earnings subject to Social Security tax will increase to $160,200 from $147,000.
The increase – significantly higher than last year’s 5.9% COLA and the largest since 1981 – is tied to the consumer price index for urban wage earners and clerical workers and was put in place to ensure the purchasing power of these benefits isn’t eroded by inflation.
According to the Social Security Administration, on average, retired workers currently collect $1,681 per month in Social Security payments, or roughly $20,172 per year. The 8.7% COLA will add about $146 per month to those payments or $1,752 for the year.
Keep in mind all federal benefits must be direct deposited. So if you haven’t already started receiving benefits, you need to establish electronic transfers to your bank or financial institution. I am happy to help you get set up if needed.
You may also like to know that we’re now in the annual open enrollment period for Medicare. You have until December 7 to review your benefit choices and costs and elect new coverage, if you like. Please take the time to go over your options. If you haven’t yet enrolled in Medicare, keep in mind you must do so within the seven-month period around your 65th birthday. Again, feel free to contact me if you have any questions or need assistance.
As always, feel free to reach out with questions or concerns on any other topics, as well.
With good regards,
Key
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