We will let you know the most important changes that U.S. retirees will face so you can know what to expect in 2023.
One of the institutions that causes most interest in the United States is the Social Security Administration (SSA), since millions of elderly adults depend on them, since when they reach their retirement stage, it is where they get the income for this stage of their life.
For this reason, it is of vital importance that people are aware of the changes that are about to be implemented in Social Security for 2023. In Globe Live Media we will let you know the most important of them, so you can know what to expect:
1.- The COLA by 2024.
Every year, senior Americans can receive an increase in their benefits, thanks to the Cost of Living Adjustment (COLA), which is based on inflation throughout the year and the price index for salaried consumers. The percentage approved can be variable and sometimes even 0%.
For 2022, the COLA was 5.9%, but for 2023, the COLA was 8.7%. According to several organizations that specialize in fighting for the rights of retirees, it is expected that the COLA for 2024 will be much lower, since inflation has been going down.
2.- Higher Social Security Disability Thresholds
Another function of the Social Security Administration is to pay monthly benefits to people who are unable to work for a year because of a disability. But it also pays some benefits to certain people who have a qualifying disability, even if they are still working. At this point, they are eligible to receive certain amounts of money with a limit and also for a certain period of time.
If you go over that threshold, then you cannot be considered disabled by the Social Security Administration. These are the changes in the thresholds that have gone into effect for 2023:
-For people who are not blind: $1,470 per month.
-For people who are blind: $2,460 per month.
Increase in maximum benefits for workers retiring at full retirement age.
The best age to retire is the so-called full retirement age, which is between 66 and 67, depending on the year in which each person was born. They all saw an increase in their maximum benefits this year, which went from $3,345 in 2022 to $3,627.