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.

Sources: SSA.gov