Social Security Benefits Set to Increase in 2023

In 2023, it’s expected that Social Security recipients will receive the most significant raise in more than 40 years. The projected cost-of-living (COLA) adjustment is slated to be announced in mid-October, but some data indicates what that amount will likely be.

There have been sharp spikes in the CPI (consumer price index) on the wages side of the equation over the last year. Because of that, we anticipate the Social Security Administration will announce an increase in Social Security income of approximately 8-9% effective in 2023. This follows an increase of 5.9% last year. 

Again, this is due to the sharp rise in inflation over the last two years. So, while it is nice to see that increase for SSI and SSDI recipients, many ongoing expenses (especially food and energy) are also sharply higher, as you are likely aware. The increase can also bring changes to your specific tax space, so be sure to consult with your tax advisor on what that may look like.

There will also be minor adjustments to Medicare expenses deducted from your Social Security income, but likely not increases. Significant relief from last year when Part B premiums increased by approximately 14%.

If you have questions about social security or your financial space, call us at (412) 928-8801 or visit us at www.oakwoodfinancialgroup.com. If you wish to schedule an introductory meeting, we would happily meet with you at no cost or obligation. 

These Blogs are provided for informational purposes only and should not be construed as investment advice. Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the authors only and do not necessarily reflect the views of SagePoint Financial.