Around 48 million retirees currently receive Social Security checks each month, and many more will be following in their footsteps over the next several years. Here are some key changes to Social Security happening in 2023 – and what you need to know.
 

Social Security Payments
 
Social Security payments will grow by 8.7% in 2023. The average benefit amount for retired workers will increase $146 to $1827 per month due to the cost-of-living adjustment. Married couples in which both spouses receive benefits will see an estimated $238 increase to an average payment of $2,972 per month in 2023. The maximum possible Social Security benefit for someone who retires at full retirement age will be $3,627 in 2023, up $282 from 2022. You can view your benefit amount by logging into your my Social Security account.

Social Security Tax Cap
 
Workers pay 6.2% of their earnings into the Social Security system until their income exceeds the taxable maximum. The taxable maximum will increase from $147,000 to 160,000. Any earnings above this amount will not be used to calculate future Social Security payments.

Medicare

In 2023, monthly Medicare Part B premiums will decrease from $170.10 to $164.90. Additional changes include:

• An additional time to sign up for Medicare. You might be able to sign up for Medicare during a Special Enrollment Period if you missed your enrollment period because of certain exceptional circumstances.
• New start dates for your Medicare coverage. Beginning January 1, 2023, if you sign up the month you turn 65 or during the last 3 months of your initial enrollment period, your coverage starts the first day of the month after you sign up.
• Kidney transplant and immunosuppressive drug coverage. If you only have Medicare because of End Stage Renal Disease (ESRD), your Medicare coverage, including immunosuppressive drug coverage, ends 36 months after a successful kidney transplant. Beginning January 1, 2023, Medicare will offer a new benefit that helps continue to pay for your immunosuppressive drugs beyond 36 months if you don’t have other health coverage. This new benefit only covers your immunosuppressive drugs and isn’t a substitute for full health coverage.

For detailed information, visit the Social Security Administration’s website here. Make an appointment with our Financial Health Center to discuss how these changes may affect your unique situation.