The Social Security Administration announced an 8.7% increase this week, the highest cost-of-living increase in 40 years.
Patriot One News has broken down the eight most important things you need to know about the increase that could contribute to your increased payment.
- The social security payment increase takes place immediately as of January 1, 2023
- The cost-of-living adjustment for 2023 will be 8.7%, the largest increase for social security benefits in more than 40 years.
- YES, it covers those on SSI and social security disability.
- The maximum federal SSI benefit for individuals will jump to $914 per month in 2023, up from $841 this year. The maximum will be $1,371 next year, up from $1,261, according to Newsmax.
- What will your specific increase be? Sometime in December, you should receive a letter from social security with detailed information pertaining to your new benefit for 2023.
- BEWARE: You might have to pay more in taxes. There’s no such thing as a free lunch, unfortunately, and wealthier recipients will need to pay taxes on their benefits, according to Congressional thresholds created in 1984. The thresholds are low, just $25,000 in income for individuals, and $32,000 for couples!
- Could Medicare B be impacted? Premiums for seniors are based on income, including Social Security.
- The annual COLA increase for Social Security benefits is not based on the inflation of goods and services. Instead, the SSA looks at the increase in consumer prices for urban workers. Since urban dwellers likely have higher costs, this benefits most beneficiaries.
