With October comes many things. A change in the leaves and temperature as we shift fully into the Autumn season, the excitement from Halloween — and adjustments to Social Security. The October changes to Social Security are few but impactful, as we will finally be receiving news on what our 2023 benefits will look like. Here are the updates that seniors should be aware of, as reported by the Motley Fool’s Trevor Jennewine.
October Changes to Social Security
There are only two updates to Social Security in the month of October, but they are incredibly important:
Change #1 – Our New Cost-of-Living Adjustment (COLA)
Change #2 – A New Maximum Benefit
By October 13th, the Fed had an enough inflation data to determine the new rate by which to increase our benefits. COLAs serve to adjust benefits so that seniors can maintain their quality of life in times of economic insecurity. Either way inflation goes, up or down, COLA will follow in the same direction.
While there was speculation on whether the COLA increase would break double digits, the actual amount has fallen between 8 and 9 percent. Bear in mind that this is still the largest COLA increase of all time. More information can be found here.
The second October change to Social Security deals with the maximum benefit seniors can receive. Seniors that wait until age 70 to claim, while earning the maximum amount of taxable earnings during their 35-year work history, were eligible for a benefit close to $3,345 a month. However, due to inflation, the max benefit possible is likely to increase to more than $3,500 a month. Please note that this is only the maximum benefit for seniors who have met the income qualifications. You can determine your new benefit here.
For more Social Security updates, make sure to follow along with the Council for Retirement Security.