Social Security beneficiaries will likely see a big increase in monthly benefits starting in January 2023. With inflation at a 40 year high, The Senior Citizens League estimated the Cost Of Living Adjustment (COLA) for next year could be 8.7 percent. Based on the most recent report on the Consumer Price Index by the US Bureau of Labor and Statistics, some estimates reflect a double digit COLA of over 10 percent.
If that happens, it will be the first double digit COLA since 1982.
In addition to the anticipated large COLA, Medicare Part B premiums are projected to decrease $5.20 in 2023. What this means is SSA beneficiaries that also have Medicare coverage will be able to keep the entire COLA rather than the increase being offset by Medicare Part B premium increase.
The larger COLA will add tens of billions of dollars to SSA liabilities potentially bringing the insolvency date forward a full year sooner.
The maximum wage that is subject to Old-Age, Survivors, and Disability Insurance (OASDI) taxes is expected to increase to $155,100. Medicare taxes remain unchanged and are applicable to all your income.
As with all of your retirement concerns, please reach out for any additional information on how to structure your SSA income within your retirement.
Maryellen Eckert
SSA Specialist
