Social Security Benefits to Increase in 2023: What You Need to KnowSocial Security benefits will see a slight increase in 2023, with the cost-of-living adjustment (COLA) announced earlier this week. This means beneficiaries will receive slightly higher checks to help cover rising costs for groceries and rent. However, low-income retirees may face challenges as this increase could push them over the eligibility threshold for other essential aid programs.To qualify for Social Security benefits, individuals must be at least sixty-two years old. Claiming benefits before the full retirement age, typically sixty-six or sixty-seven for most baby boomers, results in smaller checks. Those who delay filing until age seventy receive the highest monthly amounts, with beneficiaries generally receiving between eight hundred and three thousand dollars a month.Its important to note that Social Security income is often taxed, with up to eighty-five percent of payments subject to taxes depending on household income. However, individuals earning less than twenty-five thousand dollars, or couples earning less than thirty-two thousand dollars, will not have their benefits taxed. A new tax exemption through two thousand twenty-eight allows taxpayers sixty-five and older to claim up to six thousand dollars in addition to their standard deduction.Looking ahead, the Social Security fund faces long-term challenges and could become insolvent by the mid-two thousand thirties. This does not mean payments will stop entirely, but beneficiaries might see reduced amounts unless Congress takes action to secure additional funding. Programs like Medicare and Medicaid, which many seniors also rely on, are funded separately and are not directly impacted by the Social Security funds projections.

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