Major changes to Social Security coming in 2023
There's a huge cost-ofliving increase coming to
But that's not the only change coming. Other dollar limits on
If you need help setting and reaching retirement goals, consider working with a financial advisor.
Changes to Your Social Security in 2023 The 8.7% cost-of-living adjustment (COLA) will hit the accounts of about 70 million recipients starting this month. Because of changes to Medicare, many of those people will be able to hang onto all of that benefit raise, which averages more than
"Medicare premiums are going down and
Lifetime Earnings Minimum Increases To qualify for
You can earn four credits per year, with each credit requiring a minimum amount of earnings from your work. Last year, you earned one credit for each
Rising Earnings Tax and Income Limits Higher Earnings Tax Limit Speaking of the maximum earnings limit, that cap of
So, in 2023 someone making
Early Filers Get Higher Income Limits If you file to receive benefits before you reach your full retirement age (between 66 and 67 years old), your payments are reduced under the retirement earnings test. If you didn't hit full retirement age in 2022 but started claiming benefits, the SSA withheld
Earnings Cap for Disability Benefits Also Rises Social Security benefits aren't paid only to retirees - they also go to support disabled workers. However, anyone earning more than a certain rather low-income amount can't qualify for benefits. Non-blind disabled workers will lose their benefits once they earn more than
For blind disabled workers, that cap goes from
If, however, you'll reach your full retirement age sometime this year, the SSA will hang onto
Bottom Line Social Security in 2023 has a lot of changes, partially due to inflation. And it doesn't hurt that Medicare premiums have declined, leaving more room for additional income in retirees wallets. If you are expecting
Tips for Retirement Planning Saving is important but most people aren't likely to stow away enough to last them through their golden years. Likewise,
For help with this, consider working with a financial advisor. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now.Taxes can take a big chunk out of your retirement income, depending on where you live. To find out if you should relocate after you hang up your hat, check our story on the best states to retire for taxes.
The post "You Need to Know About These Major Social Security Changes in 2023" appeared first on SmartAsset Blog.
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