Some good news appears on the Social Security horizon. Benefits increase, premiums decrease, and the amount you can earn while receiving retirement goes up. For those in the higher income brackets, more income will be taxed however.
For the first time in years, SSA implemented a large cost of living adjustment at 8.7%. Beneficiaries of Supplemental Security Income (“SSI”) will see their first payments increased with the January benefit. The payment will arrive in bank accounts on December 30, 2022 according to the SSA’s payment schedule. The monthly maximum federal SSI amount is $914. The maximum amount for eligible couples is $1371. An essential individual can received $458.
Another 2023 change will raise the limit on the annual earnings that can be taxed by Social Security. Maximum taxable earnings rise to $160,200 in 2023 from $147,000 in 2022.
At retirement age, Social Security withholds a portion of your benefits ($1 for every $2 over the limit) if your earnings exceed a certain level and if you are under the full retirement age. This is called the Retirement Earnings Test Exempt amount. If you are under full retirement age, the earnings test exempt amount rises to $1770 a month in 2023. If you have reached full retirement age, the amount rises to $4710 a month.
The maximum Social Security benefit for an individual retiring at full retirement age increases to $3627. And in good news, Centers for Medicare and Medicaid Services is reducing the monthly Part B premium from $170.10 to $164.90.
Plan accordingly in 2023.