Summary
Several changes to Social Security will take effect soon. The cost-of-living adjustment (COLA) for benefits will be announced on October 15. Other changes include work credit definitions and tax policies, which aim to address future funding challenges.
Key Facts
- Social Security's cost-of-living adjustment (COLA) for 2023 will be finalized on October 15.
- An estimated COLA of 2.7% could increase the average monthly retirement benefit by $26.
- Beneficiaries will receive increased payments starting in January with the new COLA.
- The definition of a work credit will change, increasing the earnings required for a credit.
- In 2026, the taxable wage base will increase, meaning high earners will pay taxes on more of their income.
- Changes aim to strengthen Social Security and address potential funding shortfalls by 2033.
- Approximately 70 million Americans rely on Social Security payments monthly.
