Happy New Year!
Changes to Social Security in 2023
Good or bad?
-Well, there is a higher-than-ever positive cost-of-living increase. (COLA)
Next year’s COLA will be a whopping 8.7%. Obviously, starting in January 2023, you’ll receive an 8.7% increase in benefits.
Of course, that might result in a higher deduction for medicare.
The typical retiree will receive approximately $150 more per month, which is huge help for seniors in these days of soaring inflation and the collapse of the stock market.
For many it’s a much needed lifeline during these tough times.
Many older adults rely on their Social Security checks just to pay their day-to-day expenses.
If you still work, or are thinking of getting a job, your annual earnings limit will increase from $19,560 to $21,240 per year.
Which means that people who are still under the full retirement age, can still work without facing huge benefit reductions.
Also, the maximum monthly Social Security check increases from $4,194 per month in 2022 up to $4,555 per month – that’s an extra $4,000 per year.
Is there a downside?
The huge 8.7% COLA increase might be the highest ever, but some surveys report that 55% of retirees in America say they need more.
The record-breaking inflation in 2022 has make life very difficult for many retirees, not just low wage earners.
The Senior Citizens League reports that, in the last 12 years, Social Security benefits have lost around 40% of their purchasing power
If that continues this year, and those benefits lose more value, many retirees we will be right back where they are now – in trouble
Is there anything we can do?
If you haven’t yet retired or are planning to go back to work, the ‘experts’ suggest that you cut expenses wherever possible and save as much as you can.
With the huge cost of maintenance and repairs any small hiccup, health problems, auto repairs, replacing an appliance can put you in trouble.
-On another topic, is it possible to tell the truth and tell a lie all at the same time?
Have you seen stories about claiming that you can get an extra $18,984 in Social Security benefits?
The Social Security Administration website explains it for free.
Its not that complicated, but, As I See It, as is often the case these days, it might be the ‘truth’, but it’s not the ‘whole truth’.
Most of us think of Social Security benefits as being for older, retired Americans.
But, the fact is, that to claim all this ‘extra’ money, you just delay retirement until you’re seventy.
Thats it!
Not much help to the retired community at all.
-Retired or not, we all need to know more about how Social Security works. Can anyone educate us on these topics?
-Are these ‘facts?
-Social Security ‘Income Limits’.The earnings limit on Social Security is not the same as income taxes on Social Security.
-The ‘Earnings Limit’ does not apply if you file for benefits at your full retirement age. The limits only apply to those who begin taking Social Security benefits before reaching full retirement age.
-So, once you reach full retirement age, there is no reduction in benefits regardless of your income level.
-The earnings limit is an individual limit. If your spouse is drawing Social Security, and you are still working, your earnings will not count towards their income limit.
-As I See It – ‘SSI’ stands for ‘Social Security INSURANCE’.
-Was it ever intended to be a ‘Retirement Saving Account for everyone, or is it ‘insurance’ – a ‘safety net’ for those in need?
‘til next time……..
