From the Social Security Administration
So, what are you going to do with all your extra money?
We’re just kidding (sort of). Social Security and Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 8.7 percent in 2023, a move that could take some of the sting out of inflation for many of us.
The 8.7 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7 million SSI beneficiaries will begin on December 30, 2022. (Note: some people receive both Social Security and SSI benefits)
Read more about the Social Security Cost-of-Living adjustment for 2023.
The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200.
The earnings limit for workers who are younger than full retirement age (see Full Retirement Age Chart) will increase to $21,240. (the government deducts $1 from benefits for each $2 earned over $21,240.)
The earnings limit for people reaching their full retirement age in 2023 will increase to $56,520. (We deduct $1 from benefits for each $3 earned over $56,520 until the month the worker turns full retirement age.)
There is no limit on earnings for workers who are full retirement age or older for the entire year.
Some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
“Medicare premiums are going down and Social Security benefits are going up in 2023, which will give seniors more peace of mind and breathing room. This year’s substantial Social Security cost-of-living adjustment is the first time in over a decade that Medicare premiums are not rising and shows that we can provide more support to older Americans who count on the benefits they have earned,” Acting Commissioner Kilolo Kijakazi says.
