Fortunately for retirees depending on Social Security, payments on Social Security checks 2023 will be quite a bit higher than the payments on 2022 Social Security checks.
New Social Security Payment Amount 2023
The 2023 Social Security payment amount hasn’t been officially released yet, but some groups are expecting a 10 percent or more increase for Social Security retirees in 2023 thanks to high inflation in 2022. Although some financial groups are expecting an even higher increase. If inflation remains the same as in June, then the COLA for Social Security would be around 9 percent.
Social Security COLA Increase
COLA stands for cost of living. Social Security payments are adjusted each year to keep up with inflation. For the last few years, Social Security check amounts had been relatively flat thanks to low inflation until 2022. 2022 Social Security checks were increased by a COLA of 5.9 percent. However, inflation has been even higher during the first half of 2023.
The Fed has been trying to combat inflation by aggressively raising interest rates. If the Fed’s gambit works, inflation could be lower by year end. Whether that would translate through to the 2023 Social Security check calculations remains to be seen. Remember the COLA for Social Security is calculated based upon the third quarter CPI-W, so changes in inflation after September 30th do not affect the calculation.
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Maximum Social Security Benefit 2023
Like actual 2023 Social Security benefit payments for retirees, the maximum Social Security Benefit for 2023 will increase with the COLA. Right now, during 2022, the maximum Social Security retirement benefit payment is $2,364 if you retired at age 62 and $4,194 if you start collecting at age 70.
There is also a minimum benefit for Social Security. In 2022 the minimum benefit was $886 per month.
Social Security Taxes
Social Security benefits become taxable for taxpayer retirees with incomes of certain amounts. You have to start paying taxes if you are a single filer with an income above $25,000, or a married joint filer with income above $32,000.
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About the Author
Brian is a former Certified Financial Planner and professional financial advisor. These days, Brian builds websites and writes professional financial articles as a freelance writer. He lives in Denver with his family and enjoys writing, coding, hiking, skiing, and drone flying.