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Social Security Increase for 2023 – Finger Financial Five #104

“An ounce of prudence is worth a pound of cleverness.” – Baltasar Gracian

Have you ever found money? Maybe it was an old $10 bill in last year’s winter coat. Did you feel different about spending that $10 as opposed to $10 you earned?

Thinking differently about money because of the way it was acquired is a flaw in human judgment. 

If you control the money, be prudent about how you use it. 

This brings me to Social Security.

Benefit checks will be going up by 8.7% in January for those who are taking Social Security. Yay! Found money!

Not taking Social Security yet? Great! You still get this benefit increase!

When you claim your benefit, it will reflect the original amount, plus each year’s COLA (cost of living adjustment), plus delayed credits if claiming after FRA (full retirement age), plus adjustments for additional earnings, if applicable.

The Social Security increase is not really found money. You have been paying more at the grocery store, the gas station, and the drug store, right? This increase is intended to help offset the increase in living expenses.

Be prudent with your income increase. Spend it wisely. Replenish your savings account or accelerate a debt payment. 

Be prudent when you take Social Security. It is an important asset. Read more about that here or listen to it here

How is the government paying for this?

The Social Security wage base — that is, the maximum amount of wages subject to Social Security taxes — will rise to $160,200, which is nearly 9% higher than the current $147,000.

Fact Sheet: 2023 Social Security Changes

Got questions on when to take Social Security or anything else? Email me at [email protected] or click here to set up a phone appointment. 

Here is a cool story about “found money”. 

On the lighter side, Roxanne (our wonderful client care expert) had a birthday on Monday of this week.  Elliott turns 18 on the 20th. Time marches on …

Hope all is well with you and your family,

Jeremy

Finger Financial Five – 5 points in 5 minutes or less – is to provide you with a weekly shot of useful financial information.  My intention is to share principles, so that you will have more clarity and peace, that help you make better financial decisions.

Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor; DBA Riverbend Wealth Management.

This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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