In 2023, Social Security is going to look different. These changes won’t happen because of any big legislative moves, but instead because some modifications are built right into the program itself and happen automatically.
You may have already heard that Social Security recipients could see a cost-of-living-adjustment raise as high as 10.5% but that’s not the only news. The full retirement age is going up, along with the wage base limit for social security taxes and the thresholds at which retirees start to have benefits withheld.
So, what should seniors expect of their retirement benefits next year? Here are four big changes that should be on your radar.
1. A generous COLA
Retirees receive periodic COLAs when they are on Social Security. COLA stands for Cost of Living Adjustment, and it’s an increase in benefits meant to ensure seniors maintain their buying power even as inflation drives costs up.
Social security raise:It could go up 10.5%, but don’t celebrate yet
Maximize your benefits:Here’s how to squeeze an extra 24% out of Social Security
Inflation has been surging this year, so retirees are likely to get a huge COLA. The 2023 benefits increase could be around 10.5%, so a senior receiving the average $1,661 benefit could get about $180 more in their monthly checks.
2. An increase in the wage base limit
Each year, workers pay Social Security taxes on income up to a certain limit, called the wage base limit. In 2022, the limit is $147,000. If you earn above this, no…
