Social Security’s Six Big Changes in 2023
Category: Disability Law , Social Security
- 14 Nov 2023
- Posted By WebSiteAdmin
With the rapid changes in the economy and record inflation, 2023 saw government programs like SSDI react with changes. In this article we will list the six big changes to to Social Security.
New COLA Adjustments
COLA is an acronym that stands for Cost Of Living Adjustment. In 2023 the COLA was increased by 8.9%. This is the largest increase since 1981. According to the SSA, the average monthly Social Security benefit for all retired workers increased from $1,681 to an expected $1,827, representing a monthly gain of $146. Those payments began on December 30, 2022.
The 8.7% is an average. Some recipients will get a higher rate while others will get lower. Recipients should have received a notification of their rate adjustment earlier in the year.
Social Security Thresholds See an Increase
When a handicap prevents a person from working for a year or longer, the Social Security Administration (SSA) distributes monthly payments. These benefits typically last until the beneficiary is able to return to regular employment. But, there are some situations in which you may qualify for a disability even if you are employed, such as when a medical condition prevents you from performing the type of work you used to do. In this instance, your eligibility is restricted to a particular income level. You are no longer eligible to be classified as having a qualifying impairment after you cross that level. Based on average monthly wages, the following are the adjustments to the threshold for 2023:
| Before/After | ||
| Non-Blind | $1,350/month | $1,470/month |
| Blind | $2,260/month | $2,460/month |
| Trial Work Period (TWP) | $970/month | $1,050/month |
SSI Federal Payment Standard Increase
Maximum Federal SSI payments have increased in 2023. The monthly standard for individuals increased from $841 in 2022 to $914 in 2023. The monthly payout for couples increased from $1,261 in 2022 to $1,371 in 2023.
Workers Who Retire at Max Benefit Age Receive an Increase
The monthly maximum increased from $3,345 in 2022 to $3,627 in 2023. This is for people who wait until the maximum age of 66/67 (depending on circumstances) to retire and collect benefits.
For Those Who are Still Working, Maximum Taxable Earning Will Increase
The maximum amount that your employer is allowed to withhold from your paycheck has increased from $147,000 in 2022 to $160,200 in 2023.
Earnings Test Exempt Amounts Changed
Retirement earnings test exempt amount is when the SSA withholds certain benefits if your income exceeds certain amounts and your are under full retirement age. The earnings test exempt amount increased from $1,630 per month in 2022 to $1,770 per month in 2023 if you are under full retirement age. The monthly payment increased to $4,710 in 2023 from $4,330 in 2022 if you had reached FRA.
