Many retirees on fixed incomes have had a difficult year. Rising costs, a volatile stock market, and fears of a probable recession have many older Americans concerned about their financial future.
The following are four things to look forward to in 2023 for those nearing or currently in retirement.
Today, the Social Security Administration revealed that benefits will increase by 8.7% in 2023, the highest increase since 1981, when double-digit inflation pushed payouts up by 11%. The cost-of-living adjustment (COLA) impacts 70 million Americans, including 48 million retired employees and their wives and dependents, as well as beneficiaries of disability and survivor benefits and Supplemental Security Income. In 2023, the average monthly increase will go from $1,688 to $1,827, an increase of $142.
Social Security can help make retirement more reasonable, but with inflation on the rise, living on a fixed income is becoming increasingly difficult.
Here’s what to expect in 2023.
All of these have the potential to be game changers. Although Social Security has been established for a long time, its regulations are not etched in stone. More extensive improvements can occasionally come down the pike that benefits seniors, and here are three examples of such modifications that might have a significant beneficial impact.
Higher inflation is predicted to enhance the Social Security cost-of-living adjustment, or COLA, in 2023 by a percentage not seen in forty years. This might be interpreted as good news for seniors struggling with rising expenses. The poor part? This substantial increase might drive Social Security users into higher tax categories, resulting in almost half of all households paying taxes on their payments.
