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 US Social Security Adminstration announced the largest cost-of-living adjustment in over four decades. Clocking in at 8.7 percent, this historic COLA will shift up the maximum benefit for Social Security by a substantive margin.
The maximum depends on the age at which a person retires. For those who retired at their full retirement age, the maximum in 2022 was $3,345; those who retired at sixty-two saw a maximum of $2,364, while at the other end of the spectrum, those who retired at seventy saw a max benefit of $4,194 a month.
| Retirement Age | 2022 | 2023 |
|---|---|---|
| 62 | $2,364 | $2,569 |
| Full retirement age (65-67) | $3,345 | $3,636 |
| 70+ | $4,194 | $4,558 |
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 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.