Each new year brings changes to Social Security.
Even if youre decades away from retirement, its important to keep tabs on whats happening.
After all, Social Security gets a chunk of each paycheck during your working years.
5 Social Security Changes to Know About in 2023
Whats ahead for Social Security in 2023?
Here are the five biggest changes you should probably know about in the new year.
The 8.7% COLA is the biggest since 1981.
Probably the most talked-about change to Social Security benefits is the8.7% cost of living adjustment(COLA).
Thats the largest Social Security raise since 1981.
Over the past decade, COLAs have averaged less than 2%.
Recipients will see that extra money in their checks beginning in January.
Medicare Part B monthly premiums will decrease by $5.20 in 2023, the first decrease in a decade.
No Interest Til Almost 2027?
In 2023, youll need to earn $1,640 for each Social Security credit.
Thats up slightly from 2022, when the minimum was $1,510.
To qualify for Social Security benefits, you need at least 40 work credits.
Social Security will tax up to $160,200 of wages.
Essentially, the first $160,200 of your earnings are subject to the 6.2% Social Security tax.
Anything you earn above $160,200 is exempt.
The increase in this cap isnt something most people have to worry about, though.
Only about 6% of workers earn more than the maximum taxable income in any given year.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected]or chat with her inThe Penny Hoarder Community.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
