1. Big Cost-of-Living Adjustment

The 5.9 % rise in the Social Security cost-of-living adjustment in 2022 was the highest increase since a stunning 7.4 percent increase in 1982.

Based on current inflationary patterns, some analysts believe the increase might be as high as 8.6 percent in 2023.

The wage base is the portion of a worker's wages that are subject to Social Security taxes.

2. Jump in Wage Base

Workers may expect another increase in 2023, which means higher earnings will have to pay more in Social Security taxes.

While more of their wages will be taxed, more will be credited to their eventual Social Security benefit.

3. Increase in Maximum Benefit

The highest potential Social Security income, which is now set at $4,194 for 2022, is also expected to rise in 2023.

If you apply for Social Security benefits before reaching full retirement age and continue to work, your payments may be cut temporarily.

4. Rise in Earnings Limit

However, the restrictions on how much you may earn while still avoiding this benefit decrease are subject to annual revision, and next one is scheduled for 2023.

Although all of these prospective changes for 2023 are noteworthy, the most crucial concern for Social Security is what it will look like by the mid-2030s.

5. Changes in Other Areas

Social Security will continue to pay benefits because of payroll taxes on existing employees, but benefit levels are expected to fall to 80 percent of present levels.

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