The year 2022 brought troubling inflating rates, putting a financial strain on nearly every American. Those living on fixed incomes or requiring special assistance due to disabilities or other limitations worked hard to stretch their money and still take care of their expenses.
As 2023 begins, recipients of SSI will notice some changes to their benefits, although some individuals benefited from these changes in December 2022.
A cost-of-living concern
While there is an expectation that the prices for goods and services will rise over time, an equal adjustment in income often balances out the financial impact this has on consumers. A higher Consumer Price Index means a higher cost of living and is a measure of both inflation and deflation. Within the CPI are eight major groups evaluated for cost increases. In terms of daily living needs, these include housing, apparel, medical costs, food and beverages and transportation. When costs go up and incomes remain the same, it presents a financial burden.
A cost-of-living adjustment
More than 70 million Americans receiving SSI benefits will receive an 8.7% cost-of-living increase to help combat the effects of inflation. The maximum taxable amount of earnings liable for Social Security tax payments increased to $160,000 this year as well. There is a change in the earnings limit of individuals who reach their full retirement age during the year to $56,520 with no limit going into effect during the month of their birthday.
These adjustments can help those receiving financial assistance manage the rising costs of goods and services. Beneficiaries can find out more through the Message Center of their Social Security account.