Social Security to See Significant Adjustment for 2023
Your 2023 Social Security Benefits – Find out how your benefits have changed
Average Retirement Benefits – Starting January 2023
- All workers in 2022: $1,681/mo
- All workers in 2023: $1,827/mo (+$146)
- The 2023 maximum Social Security retirement benefits for a worker retiring at full retirement age: $3,627/mo
An 8.7% cost of living increase for Social Security retirement benefits and SSI payments begins with December 2022 benefits (payable in January 2023).
Increase your Social Security retirement benefits by 5 to 8% per year when you delay applying until you’re age 70.
Social Security Revenues & Expenditures
Revenue Sources = $1.09 trillion
- 3.5% – Taxation of benefits
- 6.4% – Interest
- 90.1% – Payroll taxes
Expenditures = $1.14 trillion
- 0.6% – Administrative expenses
- 0.4% – Railroad Retirement financial interchange
- 99.0% – Benefit payments
SOURCE: 2022 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, Table Il.B1.
2023 Social Security & Medicare Tax Rates
If you work for someone else…
- Your employer pays 7.65%
- You pay 7.65%
If you’re self-employed…
- You pay 15.3%
NOTE: The above tax rates are a combination of 6.2% for Social Security and 1.45% for Medicare. There is also a 0.9% Medicare wages surtax for those with wages above $200,000 single ($250,000 joint filers) that is not reflected in these figures.
Item 2023 2022 Change
Maximum amount you may pay in Social Security taxes $9,932.40 $9,114.00 + $818.40
Maximum earnings amount Social Security will tax at 6.2% $160,200.00 $147,000.00 + $13,200.00
- 165+ million people work and pay Social Security taxes
- Social Security has provided financial protection for Americans since 1935
Social Security Payments Explained
- Social Security (SS) retirement benefits are for people who have paid into the Social Security system through taxable income.
- Social Security Disability (SSD or SSDI) benefits are for people who have disabilities but have paid into the Social Security the system through taxable income.
- Supplemental Security Income (SSI) benefits are for adults and children who have disabilities, plus limited income and resources.
Maximum SSI Payments
Filing Status 2023 2022 Change
Individual $914/mo $841/mo + $73
Couple $1,371/mo $1,261/mo + $110
How does Social Security work?
- When you work, you pay taxes into Social Security.
- The Social Security Administration uses your tax money to pay benefits to people right now.
- Any unused money goes into Social Security trust funds and is borrowed by the government to pay for other programs.
- Later on when you retire, you receive benefits.
Here’s how you qualify for retirement benefits
- When you work and pay Social Security taxes, you earn credits toward benefits. The number of credits you need to earn retirement benefits depends on when you were born.
- If you were born in 1929 or later, you need 40 credits (10 years of work) to receive retirement benefits
- You receive one credit for each $1,640 of earnings in 2023
- 4 credits maximum per year
Did you know you can check your benefits status before you retire?
- • You can check online by creating a my
- Social Security account on the SSA website. If you don’t have an account, you’ll be mailed a paper Social Security statement 3 months before your 61st birthday.
- It shows your year-by-year earnings, and estimates of retirement, survivors and disability benefits you and your family may be able to receive now and in the future.
- If it doesn’t show earnings from a state or local government employer, contact them. The work may not be covered within Social Security.