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A 2023 Benefit Increase for Social Security

Benefits for Social Security and Supplemental Security Income will increase by 8.7% in 2023. That is an increase of more than $140 per month, on average and good news for those receiving or applying for benefits.

Cost-of-Living Adjustment

This 8.7% cost-of-living adjustment (COLA) will take effect in January 2023 and will affect more than 65 million Americans. More than seven million SSI beneficiaries will begin receiving increased payments on December 30, 2022. The annual COLA is based on any increase in the Consumer Price Index, which is determined by the Department of Labor’s Bureau of Labor Statistics.
 
The Social Security Administration normally informs beneficiaries of changes by mailing notices each December. However, it is faster to view this information online at your personal “my Social Security” account. It is easy to locate, create, or access your account at https://www.ssa.gov/myaccount/.

Medicare Adjustment

While SS benefits are increasing for 2023, Medicare premiums are going down. This will be extra helpful for seniors who rely on these programs. According to Kilolo Kijakazi, the Social Security Administration acting commissioner, this is the first time in more than 10 years that Medicare premiums have not risen.

Other Adjustments

Based on an increase in wages, the maximum amount of earnings subject to the Social Security tax will increase to $160,200 for 2023. The tax rate for employees will be 7.65% and for the self-employed, it will be 15.30% for 2023. This rate will not change from 2022.
 
The SSA has announced that the maximum possible benefits a person can receive increased from $3,345 per month to $3,627 per month, or $43,524 per year.
 
To make sure you meet your needs and are able to live comfortably in retirement, you should plan ahead by making sound investment decisions. Talking with a financial advisor is a good first step. It is also a good idea to consult with an attorney who is experienced in estate planning and elder law. By working with a financial advisor and an estate planning attorney, you can develop a plan that will set you up for retirement and give you peace of mind. The earlier you start planning, the more options you have to secure your quality of life and the future of your spouse or children.
 
Our law firm is dedicated to keeping you informed of issues that affect seniors who may be experiencing declining health and qualify or need to maintain qualification for disability, Medicaid, or other government benefits. We fill out applications and submit them for quick and efficient determination of benefits when you need them. We also help you and your loved ones prepare for potential long-term medical expenses and the need to transition to in-home care, assisted living care, or nursing facility care.
 
This article offers a summary of aspects of estate planning and elder law. It is not legal advice and does not create an attorney-client relationship. If you’re looking for an estate planning attorney in the Mount Dora, Florida area, please contact us at (352) 565-7737! We look forward to hearing from you!
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