Social Security Announces 8.7 Percent Benefit Increase for 2023
By: Social Security Administration
Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023, the Social Security Administration announced today. On average, Social Security benefits will increase by more than $140 per month starting in January.
The 8.7 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
“Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room. This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned,” Acting Commissioner Kilolo Kijakazi said.
To view a COLA message from Acting Commissioner Kijakazi, please visit www.youtube.com/watch?v=Vgm5q4YT1AM.
Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200 from $147,000.
Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. The fastest way to find out their new benefit amount is to access their personal my Social Security account to view the COLA notice online. It’s secure, easy, and people find out before the mail arrives. People can also opt to receive a text or email alert when there is a new message from Social Security–such as their COLA notice–waiting for them, rather than receiving a letter in the mail. People may create or access their my Social Security account online at www.ssa.gov/myaccount.
Information about Medicare changes for 2023 is available at www.medicare.gov. For Social Security beneficiaries enrolled in Medicare, their new higher 2023 benefit amount will be available in December through the mailed COLA notice and my Social Security’s Message Center.
The Social Security Act provides for how the COLA is calculated. To read more, please visit www.ssa.gov/cola.
Acting Commissioner
The Social Security Administration continues our outreach efforts to the community throughout the duration of the COVID-19 pandemic. Feel free to contact me to learn more what we can offer to your group or organization.
2023 SOCIAL SECURITY CHANGES
Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2021 through the third quarter of 2022, Social Security and Supplemental Security Income (SSI) beneficiaries will receive an 8.7 percent COLA for 2023. Other important 2023 Social Security information is as follows:
Tax Rate | 2022 | 2023 |
Employee | 7.65% | 7.65% |
Self-Employed | 15.30% | 15.30% |
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings. Also, as of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.
| 2022 | 2023 |
Maximum Taxable Earnings | ||
Social Security (OASDI only) | $147,000 | $160,200 |
Medicare (HI only) | No Limit | |
Quarter of Coverage | ||
| $1,510 | $1,640 |
Retirement Earnings Test Exempt Amounts | ||
Under full retirement age |
$19,560/yr. ($1,630/mo.) |
$21,240/yr. ($1,770/mo.) |
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. | ||
The year an individual reaches full retirement age | $51,960/yr. ($4,330/mo.) | $56,520/yr. ($4,710/mo.) |
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit. | ||
Beginning the month an individual attains full retirement age | None |
| 2022 | 2023 |
Social Security Disability Thresholds | ||
Substantial Gainful Activity (SGA) |
| |
Non-Blind | $1,350/mo. | $1,470/mo. |
Blind | $2,260/mo. | $2,460/mo. |
Trial Work Period (TWP) | $ 970/mo. | $1,050/mo. |
Maximum Social Security Benefit: Worker Retiring at Full Retirement Age | ||
| $3,345/mo. | $3,627/mo. |
SSI Federal Payment Standard | ||
Individual | $ 841/mo. | $ 914/mo. |
Couple | $1,261/mo. | $1,371/mo. |
SSI Resource Limits | ||
Individual | $2,000 | $2,000 |
Couple | $3,000 | $3,000 |
SSI Student Exclusion | ||
Monthly limit | $2,040 | $2,220 |
Annual limit | $8,230 | $8,950 |
Estimated Average Monthly Social Security Benefits Payable in January 2023 | ||
|
Before 8.7% COLA |
After 8.7% COLA |
All Retired Workers | $1,681 | $1,827 |
Aged Couple, Both Receiving Benefits | $2,734 | $2,972 |
Widowed Mother and Two Children | $3,238 | $3,520 |
Aged Widow(er) Alone | $1,567 | $1,704 |
Disabled Worker, Spouse and One or More Children | $2,407 | $2,616 |
All Disabled Workers | $1,364 | $1,483 |