Social Security Benefits Increase in 2023.
The Social Security Administration (SSA) announced on October 13 that all monthly Social Security and Supplemental Security Income (SSI) benefits will increase by 8.7% in 2023.
The change would affect approximately 70 million Americans and this amount to an increase of more than $140 per month starting in January 2023.
The 8.7% cost of living adjustment (COLA) will begin in January 2023 with over 65 million benefits. The enhanced payments to over 7 million SSI beneficiaries will start from December 30, 2022.
Based on the increase in median wages, the maximum amount of Social Security tax income will increase to $160,200 from the 2022 level of $147,000.
The income limit will increase to $21,240 for workers who are younger than retirement age.
This is not for everyone. The SSA will see that $1 benefits will be withheld for every $2 earned for those whose income exceeds $21,240.
The income limit for people who reach full retirement age in 2023 will increase to $56,520.
Here, the SSA says that $1 will be deducted from benefits for every $3 earned over $56,520 until the employee reaches full retirement age.