Social Security 2022-2023

Updated: October 13, 2022

Table of Contents

    Social Security payments will see an 8.7% cost-of-living increase in 2023, the Social Security Administration (SSA) announced. The increase affects roughly 70 million Social Security and Supplemental Security Income beneficiaries. 

    For an average retiree that adds up to an additional $140 per month in monthly Social Security income.

    The 2023 Social Security COLA increase is the largest since 1981, and it comes on the heels of this year’s record increase. Social Security payments saw 5.9% increase in 2022. It was the largest increase in 40 years at the time. 

    See our COLA increase watch for more on the COLA and Social Security increases. The Social Security Administration usually announces the COLA increase for the next year in October. 

    #BreakingNews – The 2022 COLA is 5.9%. Stay tuned for more information.

    — SocialSecurity_Press (@SSAPress) Oct. 13, 2021

    Social Security

    2023 Social Security and SSDI Effective & Payment Dates:

    • Social Security benefits are effective beginning with December benefits, which are payable in January.
    • Federal SSI payment levels will begin on Dec. 30, 2022.

    2023 Social Security Changes

    In 2023, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $160,200 from $147,000.

    The earning limit for younger workers will to $21,240 in 2023.

    For workers who reach age 60 in 2023, the earning limit will increase to $56,520. For each $3 over the limit, the Social Security Administration deducts $1 until the month the worker turns 67.

    2022 Social Security Changes 

    In 2022, the maximum amount of earnings subject to the Social Security tax (taxable maximum) increased to $147,000 from $142,800. The earning limit for younger workers increased to $19,650.

    The earnings limit for people reaching their “full” retirement age in 2021 increased to $51,960.

     
    2021
    2022
    2023
    Social Security Disability Thresholds
    Substantial Gainful Activity (SGA)
    Non-Blind$1,310/mo.$1,350/mo.$1,470/mo.
    Blind$2,190/mo.$2,260/mo.$2,460/mo.
    Trial Work Period (TWP)$ 940/mo.$ 970/mo.$1,050/mo.
    Maximum Social Security Benefit: Worker Retiring at Full Retirement Age
    $3,148/mo.$3,345/mo.$3,627/mo.
    SSI Federal Payment Standard
    Individual$ 794/mo.$ 841/mo.$913/mo.
    Couple$1,191/mo.$1,261/mo.$1,371/mo.
    SSI Resource Limits
    Individual$2,000$2,000 $2,000
    Couple$3,000$3,000$3,000
    SSI Student Exclusion
    Monthly limit$1,930$2,040 $2,220
    Annual limit$7,770$8,230$8,950
    Estimated Average Monthly Social Security Benefits Payable in January
    Before 5.9% COLA
    After 5.9% COLA
    After 8.7% COLA
    All Retired Workers$1,543$1,657$1,827
    Aged Couple, Both Receiving Benefits$2,596$2,753$2,972
    Widowed Mother and Two Children$3,001$3,187 $3,520
    Aged Widow(er) Alone$1,453$1,553 $1,704
    Disabled Worker, Spouse and One or More Children$2,224$2,383$2,616
    All Disabled Workers$1,277$1,358 $1,483

    Source: SSA.gov


    How Social Security is Calculated

    Social Security benefits are based on lifetime earnings and are adjusted or “indexed” to actual earnings to account for changes in average wages since the year the earnings were received. Then, Social Security calculates the average indexed monthly earnings during the 35 years in which the most was earned. They apply a formula to these earnings and arrive at your basic benefit, or “primary insurance amount.” This is how much would be received at your full retirement age — 65 or older, depending on the date of birth.

    How Are Social Security Increases Calculated?

    To ensure the value of money at retirement keeps up with the rate of inflation, the SSA ties its adjustment for Social Security benefits to the wage earners’ Consumer Price Index (CPI-W). It calculates each year’s Cost-of-Living Adjustment (COLA) by calculating the change in the CPI-W for urban wage earners and clerical workers from the third-quarter average of the previous year to the third-quarter average for the current year.

    CPI-W Measurement
    202020212022
    July252.636267.789292.219
    August253.597273.567291.629
    September254.004274.31291.854
    Third quarter total754.999808.157875.702
    Average (rounded to the nearest 0.001)253.412269.386291.901
    Inflation According to the CPI-W1.3%5.9%8.7%

    COLA Increase History Since 1975

    YearCOLA
    20238.70%
    20225.90%
    20211.30%
    20201.60%
    20192.80%
    20182.00%
    20170.30%
    20160.00%
    20151.70%
    20141.50%
    20131.70%
    20123.60%
    20110.00%
    20100.00%
    20095.80%
    20082.30%
    20073.30%
    20064.10%
    20052.70%
    20042.10%
    20031.40%
    20022.60%
    20013.50%
    20002.50%
    19991.30%
    19982.10%
    19972.90%
    19962.60%
    19952.80%
    19942.60%
    19933.00%
    19923.70%
    19915.40%
    19904.70%
    19894.00%
    19884.20%
    19871.30%
    19863.10%
    19853.50%
    19843.50%
    1983N/A
    19827.40%
    198111.20%
    198014.30%
    19799.90%
    19786.50%
    19775.90%
    19766.40%
    19758.00%

    Related Articles
    Money and FinanceCost of Living Adjustment
    VA Disability RatesStates That Don’t Tax Social Security
    Written by Veteran.com