Social Security Increase in Maximum Benefit

Tax increases are never welcomed, but the increase in the wage base has a silver lining for high earners. 

Although more of their income will be taxed, more of their earnings will also be credited to

Their future Social Security benefits. The wage base increases along with qualifying Social Security earnings.

A growing wage base allows you to credit more earnings to your benefit, 

Since the amount you earn during your working career is one of the most important factors in determining your final payout.

The maximum Social Security benefit, which is $4,194 in 2022, is also likely to increase in 2023.

Social Security Rise in Earnings Limit

Your benefits may be temporarily reduced if you apply for Social Security benefits before full retirement age. 

In 2023, another adjustment will be made to the limits of how much you can earn and still avoid this reduction in benefits.

For 2022, workers earning less than $19,560 per year, or $1,630 per month, were exempt. 

For every $2 earned above this limit, benefits were reduced by $1. After reaching full retirement age in 2022,

Those earning more than $51,960 per year, or $4,330 per month, will have their wages reduced

By $1 for every $3 earned above a separate limit. After that, all workers are exempt from benefit reductions.

It is important to note that these reductions in benefits are only temporary. Upon reaching full retirement age,

Workers receive adjusted payments reflecting previously withheld benefits. 

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