What is the maximum amount you can earn from Social Security in 2023?
The current maximum for Social Security benefits depends on the age at which one retires, and changes year to year thanks to the COLA.
The Social Security Administration in the United States released the greatest cost-of-living increase in more than four decades. With an annual rate of 8.7 percent, this historic COLA will significantly increase the maximum Social Security payout.
The maximum is determined by the age of retirement. The maximum payment in 2022 for individuals who retired at their full retirement age was $3,345; those who retired at sixty-two saw a maximum of $2,364; and those who retired at seventy had a maximum benefit of $4,194 per month.
|Full retirement age (65-67)||$3,345||$3,636|
How is it changing for 2023?
In 2022 the average monthly payment for retired workers was $1,673.88, which is expected to rise to $1,819 when the upcoming 8.7 percent increase is factored in. This means that the average retirement benefits recipients can expect an increase of around $146 per month.
This COLA will increase benefits for more than seventy million beneficiaries, and the relief cannot come soon enough. Grocery prices have increased thirteen percent since September 2021, and other commodities, like gasoline (18.2 percent), utilities like gas (33.1 percent), and shelter (6.6 percent), have seen similar spikes.
How can you access the full retirement?
In 2023, you’ll need $160,200 to get the maximum Social Security retirement payment. That’s Social Security taxes’ maximum.
Making $160,200 next year won’t be enough. The SSA calculates your retirement benefit using your top 35 years of earnings.
No, you don’t need $160,200 for 35 years. Social Security payroll tax caps have fluctuated. However, to earn the maximum $4,555 monthly benefit, there is no one wage threshold. You must have reached 35 wage levels.
How will the increase impact Supplemental Security Income?
Over the course of this year, this would mean an additional $1,752 in benefits.
The COLA increase affects all aspects of Social Security, not just pensions.
The Supplemental Support Income (SSI) federal standard payments will increase from $841 per month to $914. For couples, this means that they could receive an additional $73 per month for a total of $1,756 in 2023.
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