Social Security 2023: A Quick Refresher on the Changing Landscape - GoBankingRates
We’re two days away from a new calendar year and, as happens every year, the flipping of the calendar brings with it a slate of new parameters governing Social Security and affecting those receiving benefits. The GoBankingRates editorial staff has assembled a handy itemization of the most significant changes, from the extraordinary cost-of-living adjustment (COLA) to the new earnings limits (i.e., the wage cap for application of payroll taxes and the earnings limits for beneficiaries under their full retirement age). For a quick update on what limits are changing, check out their post here…
While the GoBankingRates post notes that the 8.7% COLA is historically high–in fact, the highest in 41 years–it deserves mentioning that this uncommonly large benefit increase may play a hand in another part of Social Security’s changing landscape soon (hopefully beginning in 2023). The point here is that the historically high COLA is expected, by many financial pundits, to draw the full depletion date for Social Security’s combined trust funds a year closer. In fact, some official sources have pegged the depletion date as a mere decade away.
With respect to the Social Security landscape this year, it appears possible that the proximity of full reserve depletion may finally catch the attention of Congress, since a decade really isn’t that long and since time really is running out on the ability to effect changes in a somewhat orderly fashion. Stay tuned to this website for updates on legislative activity related to resolution of Social Security’s solvency problem!