The social security system may undergo some changes in 2023   

The Social Security program has remained relatively static for the last decade or so.

Inflation makes big news, but so does Social Security. The reason for this is that so many aspects of

The program are affected by changes in the cost of living. As a result of rising inflation,

Social Security retirement payments were increased by 5.9% for the first time in 2022.

As the second half of 2022 approaches, the potential changes that may affect Social Security in 2023 are beginning to take shape. 

In 2023, current workers and retiree beneficiaries should prepare for a number of big changes.

Social Security's cost-of-living adjustment increased 5.9% in 2022, the biggest increase since 1982,

Big Cost-of-Living Adjustment

a whopping 40 years ago. At this point, it seems all but inevitable that the COLA for 2023 will be even higher

Than it was in 2022. According to current inflationary trends, the bump could be as high as 8.6%.

The Social Security Administration to determine the COLA for the following year.

For Social Security purposes, the wage base is the amount of earnings that are taxable.

Jump in Wage Base

The 6.2% OASDI tax, which funds various Social Security programs, applies only to the first $147,000 of

A worker's earnings in 2022. It is likely that this number will increase significantly in 2023 due to changes in inflation.

A high rate of inflation in 2021, for example, pushed the wage base in 2021 up 2.9%. 

It's expected that wages will rise again in 2023, so higher earners will have to pay more into Social Security.

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