Vance Cariaga
·1 min read
The 8.7% Social Security cost-of-living adjustment that went into effect in January of 2023 boosted payments across the board for recipients.
See: 6 Big Shakeups to Social Security in 2023
Find: 3 Ways To Recession-Proof Your Retirement
As the Social Security Administration (SSA) detailed: “The maximum benefit depends on the age you retire. For example, if you retire at full retirement age in 2023, your maximum benefit would be $3,627. However, if you retire at age 62 in 2023, your maximum benefit would be $2,572. If you retire at age 70 in 2023, your maximum benefit would be $4,555.”
The Supplemental Security Income federal payment standard rose to $914 a month in 2023 from $841 in 2022 for individuals, and rose to $1,371 a month in 2023 from $1,261 a month in 2022 for couples. Further, some states supplement this federal payment, as the SSA indicated.
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Of course, most Social Security recipients don’t get the maximum benefit or anywhere near it. To get the maximum, you must have earned a certain amount of income during your career and paid a certain amount of taxes into the Social Security system.
The average Social Security payment for all retired workers, as of March 2023, was $1,696 per month.
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This article originally appeared on GOBankingRates.com: Social Security: What Is the Maximum Social Security Benefit You Can Receive in 2023?
Certainly! I've got a deep understanding of Social Security and retirement planning. The 8.7% cost-of-living adjustment (COLA) that took effect in January 2023 significantly impacted Social Security payments. COLA adjustments are based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) and are meant to counteract inflation's effects on Social Security benefits.
The article discusses the maximum benefits based on retirement age. For instance, in 2023, the maximum benefit for those retiring at full retirement age was $3,627. This figure differs depending on the retirement age, as detailed - $2,572 for retirement at age 62 and $4,555 for retirement at age 70. This demonstrates how the timing of retirement affects the maximum benefit amount.
Moreover, the article touches on Supplemental Security Income (SSI), highlighting the increase in federal payment standards for individuals and couples. States also supplement this federal payment, providing additional support for eligible recipients.
The piece emphasizes that most recipients don't receive the maximum benefit due to the specific income and tax criteria set by the Social Security system. The average payment for retired workers in March 2023 stood at $1,696 per month, significantly lower than the maximum figures highlighted earlier.
Understanding these concepts involves delving into Social Security intricacies, such as how retirement age impacts benefits, the role of COLA in benefit adjustments, and the differentiation between Social Security and Supplemental Security Income. It also touches on broader financial planning implications, including the impact of savings and other income sources on Social Security payments.
